DEKALB COUNTY BOARD OF EDUCATION
STONE MOUNTAIN, GEORGIA
SINGLE AUDIT REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020
(Including Independent Auditor's Reports)

DEKALB COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-
Independent Auditor's 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 Government Auditing Standards
Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
Schedule of Findings and Questioned Costs Section I - Summary of Auditor's Results Section II - Financial Statement Findings Section III - Federal Award Findings and Questioned Costs
Schedule of Expenditures of Federal Awards Schedule of Expenditures of Federal Awards
Summary Schedule of Prior Audit Findings
Management's Corrective Action Plan for Current Year Findings

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Greg S. Griffin
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the DeKalb County Board of Education
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the DeKalb County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated April 28, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS 2020-001, that we consider to be a material weakness.

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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instance of noncompliance or other matters that are required to be reported under Government Auditing Standards.
School District's Response to Findings
The School District's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Respectfully submitted,

June 3, 2021

Greg S. Griffin State Auditor

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Greg S. Griffin
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Superintendent and Members of the DeKalb County Board of Education
Report on Compliance for Each Major Federal Program
We have audited the DeKalb County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance 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 School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance.

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Opinion on Each Major Federal Program
In our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020.
Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying Schedule of Findings and Questioned Costs as items FA 2020-001 and FA 2020-002. Our opinion on each major federal program is not modified with respect to these matters.
The School District's response to the noncompliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
Report on Internal Control over Compliance
Management of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified certain deficiencies in internal control over compliance, as described in the accompanying Schedule of Findings and Questioned Costs as items FA 2020-001 and FA 2020-002, that we consider to be significant deficiencies.

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The School District's response to the internal controls over compliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,

June 3, 2021

Greg S. Griffin State Auditor

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Schedule of Findings and Questioned Costs
The Schedule of Findings and Questioned Costs (Schedule) was prepared in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule contains the following sections:
Section I - Summary of Auditor's Results
A summary of the results of our audit and a list of the DeKalb County Board of Education's (School District) major federal programs are presented in this section of the Schedule.
Section II - Financial Statement Findings
This section presents findings related to the financial statements, including any material weaknesses or significant deficiencies in internal control over financial reporting and noncompliance and other matters that are required to be reported in accordance with Government Auditing Standards.
Section III - Federal Award Findings and Questioned Costs
This section presents federal award findings and questioned costs. Findings are reported for material weaknesses or significant deficiencies in internal control over compliance and material noncompliance with the compliance requirements that have a direct and material effect on each of the School District's major federal programs and other findings and questioned costs that are required to be reported pursuant to Title 2 CFR 200.516(a).

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DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2020

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of auditor's report issued: Governmental Activities; All Major Funds; Aggregate Remaining Fund Information

Unmodified

Internal control over financial reporting: Material weakness identified? Significant deficiency identified?

Yes None Reported

Noncompliance material to financial statements noted:

No

Federal Awards

Internal Control over major programs:

Material weakness identified?

No

Significant deficiencies identified?

Yes

Type of auditor's report issued on compliance for major programs: All major programs

Unmodified

Any audit findings disclosed that are required to be reported in

accordance with 2 CFR 200.516(a)?

Yes

Identification of major programs:

CFDA Numbers

Name of Federal Program or Cluster

10.553, 10.555 84.010

Child Nutrition Cluster Title I Grants to Local Educational Agencies

Dollar threshold used to distinguish between Type A and Type B programs:

$3,000,000.00

Auditee qualified as low-risk auditee?

No

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DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2020

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FS 2020-001 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding:

Controls over Financial Reporting Financial Reporting Material Weakness None FS 2019-001, 2018-001, 2017-001

Description: The School District did not have adequate controls over the financial statement reporting process to ensure all required activity was correctly included in the financial statements presented for audit. The original financial statements, as presented for audit, contained material and significant errors and omissions.

Criteria: Management is responsible for having adequate controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills, and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB).

GASB Statement No. 34, Basic Financial Statements Management's Discussion and Analysis for State and Local Governments (Statement), requires governments to present government-wide and fund financial statements as well as summary reconciliation of the (a) total governmental funds balances to the net position of governmental activities in the Statement of Net Position, and (b) total changes in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the statement requires information about the government's major and nonmajor funds in the aggregate, to be provided in the fund financial statements.

Chapter II 2 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles.

Condition: The following errors and omissions were noted in the School District's financial statements and note disclosures as presented for audit:
Expenditures and payables within the capital projects fund were noted as materially overstated in the amount of $8,072,887.88, due to duplication occurring as the result of miscommunication during the financial statement preparation process. Adjustments to the financial statements at the fund and government-wide level were proposed by the auditors and accepted by the School District.
On the Statement of Activities, percentages used to allocate gross pension expense across functions included keying errors, resulting in functional misclassifications in the amount of $8,533,155.38. Adjustments to the financial statements were proposed by the auditors and accepted by the School District.
State grant revenue was noted as overstated in the amount of $3,771,545.70 due to recognition of certain grant accounts receivables twice. Adjustments to the financial statements were proposed by the auditors and accepted by the School District.
Property tax revenue was overstated by $5,473,857.80 due to revenue recognition complications arising from an early levy date. Adjustments to the financial statements were proposed by the auditors and accepted by the School District.

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DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2020
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
On the Statement of Activities, the method used by the School District to account for the conversion from modified accrual to full accrual was based on inaccurate depreciation percentages, resulting in a significant misclassification of expense by function in the amount of $37,202,970.79. Adjustments to the financial statements were proposed by the auditors and accepted by the School District.
On the Statement of Activities, the method used by the School District to distribute unallocated operating grants and contributions program revenue by function was based on depreciation expense rather than allocating revenues based on actual program cost by function, resulting in a significant misclassification of revenues by function in the amount of $54,058,594.66. Adjustments to the financial statements were proposed by the auditors and accepted by the School District.
On the Statement of Activities, the method used by the School District to allocate capital grants and contributions revenue by function was based on inaccurate depreciation percentages by function, resulting in a misclassification of revenues by function in the amount of $15,906,419.00. Adjustments to the financial statements were proposed by the auditors and accepted by the School District.
The disclosed coverage for worker's compensation insurance was overstated by $25,000,000.00 due to changes in policy not being accurately reflected in the notes to the financial statements. Adjustments to the financial statements were proposed by the auditors and accepted by the School District.
Cash balance disclosures for total bank balances were understated by $4,484,027.88 and bank balances included in the Georgia Pledging Pool (State Deposit Program) $55,040,286.41 were omitted from the categorization of deposits and cash equivalents and investments note. Adjustments to the financial statements were proposed by the auditors and accepted by the School District.
Several other corrections and reclassification entries were proposed by the auditor and accepted by the School District to properly present the School District's financial statements, note disclosures, and supplementary information.
Cause: In discussing this deficiency with the School District, they stated that the cause was a direct result of the lack of an effective review process to comprehensively evaluate the financial statements for accuracy and consistency across financial statements and disclosures as prepared by their consultant.
Effect or Potential Effect: Material and significant misstatements and misclassifications were included in the financial statements presented for audit. Numerous adjustments were necessary in order for the School District's financial statements to be in conformity with GAAP. The lack of controls and monitoring could impact the reporting of the School District's financial position and results of operations.
Recommendation: The School District should strengthen their internal controls and preparation and review procedures over financial reporting to ensure that the financial statements, including disclosures, presented for audit are complete and accurate. These procedures should be performed by a properly trained individual(s) possessing a thorough understanding of the applicable GAAP, GASB pronouncements and knowledge of the School District's activities and operations. The School District should also consider implementing the use of a review checklist to assist in the review process over the financial statements.
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DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2020

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

Views of Responsible Officials: We concur with this finding.

III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA 2020-001 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Numbers: Questioned Costs: Repeat of Prior Year Finding:

Improve Controls over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 205GA324N1099 None Identified FA 2019-001, FA 2018-001, FA 2017-002, and FA 2016-001

Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Child Nutrition Cluster.

Criteria: 2 CFR 200.313(d)(1) states, "Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property". In addition, 2 CFR 200.313(d)(2) states, "A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years".

Condition: The following deficiencies were noted when reviewing the Child Nutrition Cluster equipment listing and physically locating equipment items:

Property records did not include the following required components for all equipment items: (1) the source of funding for the property (including the FAIN), (2) who holds title, (3) the acquisition date, (4) cost of the property, (5) percentage of Federal participation in the project costs for the federal award under which the property was acquired, and (6) use and condition of property.
While a physical inventory was performed and a listing is maintained, the property records for the equipment items were not fully updated to reflect the results.

Cause: In discussing this deficiency with the School District, they stated that a physical inventory was performed, but due to the delay in the timing of the inventory as a result of COVID, they have not yet been able to resolve all discrepancies identified. In addition, though significant errors were made in updating the equipment listing. School District personnel were unable to complete this process due to time and physical access constraints posed by the COVID closures.

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DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2020

III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

Effect or Potential Effect: Failure to maintain a complete an accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or Federal funds. Additionally, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance.

Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of Federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a complete physical inventory of equipment is performed, and the results are reconciled back to the equipment listing at least once every two years.

Views of Responsible Officials: We concur with this finding.

FA 2020-002

Improve Controls over Procurement

Compliance Requirement: Procurement and Suspension and Debarment

Internal Control Impact:

Significant Deficiency

Compliance Impact:

Nonmaterial Noncompliance

Federal Awarding Agency: U.S. Department of Education

Pass-Through Entity:

Georgia Department of Education

CFDA Numbers and Title: 84.027 and 84.173 Special Education Cluster

Federal Award Numbers: H027A180073, H173A180081, H027A190073, H173A190081

Questioned Costs:

$31,662.24

Repeat of Prior Year Findings: FA 2019-002, FA 2018-002, and FA 2017-002

Description: The policies and procedures of the School District did not provide adequate internal controls over procurement as it relates to Special Education Cluster.

Criteria: 2 CFR 200.318(a) states in part that the non-Federal entity must "use its own documented procurement procedures which reflect applicable State, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law." In addition, provisions included in 2 CFR 200.320(b) provide guidance for procurement through small purchase procedures and state, "If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources."

Condition: In an effort to determine whether appropriate internal controls were implemented and applicable compliance requirements were met, a test of procurement transactions associated with ten vendors were randomly selected for testing using a non-statistical sampling approach. Upon review of these procurement transactions, it was noted that the School District could not provide evidence that an adequate number of rate or price quotations were obtained from qualified sources for four small purchase expenditures.

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DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2020
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Questioned Costs: Questioned costs of $31,662.24 were identified for expenditures that did not follow the School District's procurement procedures. Cause: In discussing the deficiencies with management, they stated that internal control procedures related to procurement were not being followed appropriately. In addition, management did not adequately monitor the procurement internal control procedures. Effect or Potential Effect: Failure to appropriately implement procedures to address procurement compliance requirements exposes the School District to unnecessary risk of error and misuse of Federal funds. In addition, this deficiency could lead to the return of grant funds associated with unallowable expenditures. Furthermore, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance Recommendation: The School District should evaluate and improve internal control procedures to ensure that required procurement procedures are followed, and appropriate documentation is obtained and retained. In addition, management should develop a monitoring process to ensure that these procedures are operating effectively and as designed. Views of Responsible Officials: We concur with this finding.
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Schedule of Expenditures of Federal Awards
The Schedule of Expenditures of Federal Awards (Schedule) is presented for purposes of additional analysis as required by the Uniform Guidance. The Schedule provides a summary of the DeKalb County Board of Education federal program expenditures for the fiscal year ended June 30, 2020.
The Schedule presents total federal awards expended for each individual federal program, cluster, and federal awarding agency.

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DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FISCAL YEAR ENDED JUNE 30, 2020

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 U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants
Total Special Education Cluster
Other Programs Direct Gaining Early Awareness and Readiness for Undergraduate Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Charter Schools Education for Homeless Children and Youth Education for Homeless Children and Youth English Language Acquisition State Grants English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies
Total Other Programs
Total U. S. Department of Education
National Aeronautics and Space Administration Pass-Through From Georgia Tech. Award #101557 Solar System Exploration Research Virtual Institute
Labor, U. S. Department of Pass-Through From Dekalb County Board of Health Parent Health Ambassador Grant
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
10.553 10.555
84.027 84.027 84.173 84.173
84.334 84.048 84.282 84.196 84.196 84.365 84.365 84.011 84.011 84.424A 84.424A 84.367 84.367 84.010 84.010
43.001
93.738

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

205GA324N1099 $ 205GA324N1099

8,599,750.85 42,835,184.34
51,434,935.19

H027A180073 H027A190073 H173A180081 H173A190081
** V048A190010 U282A160016 S196A180011 S196A190011 S365A180010 S365A190010 S011A180011 S011A190011 S424A180011 S424A19001 S367A180001 S367A190001 S010A180010 S010A190010
**
**

70,531.69 19,338,504.56
216,239.06 180,124.13
19,805,399.44
171,950.46
1,234,043.41 156,860.20 24,472.47 43,485.53 662,381.45
1,057,309.17 12,242.46 4,865.00
741,718.28 2,183,452.13 1,651,186.69 1,503,849.87 16,841,657.29 22,750,170.15
49,039,644.56
68,845,044.00
6,179.02
6,229.36

899,439.51 203,205.56 1,175,791.39 2,278,436.46

Total Expenditures of Federal Awards

$ 122,570,824.03

** Pass-through grantor number not available.

Note 1. Basis of Presentation

Notes to the Schedule of Expenditures of Federal Awards

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the DeKalb County Board of Education (the "Board") under programs of the federal government for the year ended June 30, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board.

Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Note 3. Indirect Cost Rate

The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

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Summary Schedule of Prior Audit Findings

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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, 2020

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FS-6441-13-02 Control Category: Internal Control Impact: Compliance Impact:

Capital Asset Maintenance Capital Assets Material Weakness None

Finding Status:

Previously Reported Corrective Action Implemented

FS 2014-002 Control Category: Internal Control Impact: Compliance Impact:

Capital Asset Maintenance Capital Assets Significant Deficiency None

Finding Status:

Previously Reported Corrective Action Implemented

FS 2015-001 Control Category: Internal Control Impact: Compliance Impact:

Inadequate Controls over Capital Assets Capital Assets Significant Deficiency None

Finding Status:

Previously Reported Corrective Action Implemented

FS 2016-001 Control Category: Internal Control Impact: Compliance Impact:

Controls over Capital Asset Capital Assets Significant Deficiency None

Finding Status:

Previously Reported Corrective Action Implemented

FS 2017-001 Control Category: Internal Control Impact: Compliance Impact:

Controls over Financial Reporting Financial Reporting Material Weakness None

Finding Status:

Partially Resolved See Corrective Action/Responses

See response to finding number FS 2019-001.

FS 2017-002 Control Category: Internal Control Impact: Compliance Impact:

Controls over Capital Assets Capital Assets Significant Deficiency None

Finding Status:

Previously Reported Corrective Action Implemented

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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, 2020

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FS 2018-001 Control Category: Internal Control Impact: Compliance Impact:

Controls over Financial Reporting Financial Reporting Material Weakness None

Finding Status:

Unresolved See Corrective Action/Responses

See response to finding number FS 2019-001.

FS 2018-002 Control Category: Internal Control Impact: Compliance Impact:

Controls over Capital Assets Capital Assets Significant Deficiency None

Finding Status:

Previously Reported Corrective Action Implemented

FS 2019-001 Control Category: Internal Control Impact: Compliance Impact:

Controls over Financial Reporting Financial Reporting Material Weakness None

Finding Status:

Unresolved See Corrective Action/Responses

Management agrees with this finding. A reorganization plan currently being implemented will strengthen the Finance team. Standard procedures are being reviewed and employee training & implementation of best practices is actively being completed. The School District is set to have the new Financial Information System (FMIS) fully implemented early 2022. Additional resources will be dedicated to the month-end closings, year-end closing, and financial statement preparation process. Finally, the School District consults with an external financial statement preparer, which will be augmented by the employment of a Director of Financial Reporting.

Estimated Completion Date: June 30, 2021

Contact Person: Charles Burbridge, CFO Telephone: (678) 676-1200 E-mail: Charles_Burbridge@dekalbschoolsga.org

FS 2019-002 Control Category: Internal Control Impact: Compliance Impact:

Controls over Capital Assets Capital Assets Significant Deficiency None

Finding Status:

Previously Reported Corrective Action Implemented

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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, 2020

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FA-2016-001 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs:

Controls over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 16165GA324N1099 None Identified

Finding Status:

Partially Resolved See Corrective Action/Responses

See response to finding number FA 2019-001.

FA 2017-001 Compliance Requirement: Internal Control Impact : Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs:

Controls over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 17175GA324N1099, 17175GA324N1100 None Identified

Finding Status:

Partially Resolved See Corrective Action/Responses

See response to finding number FA 2019-001.

FA 2017-002 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Numbers: Questioned Costs:

Controls over Procurement and Suspension and Debarment Procurement and Suspension and Debarment Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Georgia Department of Education Special Education Cluster (CFDA 84.027 and 84.173) H027A150073, H027A160073, H173A150081, H173A160081 None Identified

Finding Status:

Partially Resolved See Corrective Action/Responses

See response to finding number FA 2019-001.

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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, 2020

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FA 2018-001 Compliance Requirement: Internal Control Impact : Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs:

Controls over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 18185GA324N1099, 18185GA324N1100 None Identified

Finding Status:

Partially Resolved See Corrective Action/Responses

See response to finding number FA 2019-001.

FA 2018-002 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Numbers: Questioned Costs:

Controls over Procurement and Suspension and Debarment Procurement and Suspension and Debarment Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Georgia Department of Education Special Education Cluster (CFDA 84.027 and 84.173) H027A160073, H027A170073, H173A170081 None Identified

Finding Status:

Unresolved See Corrective Action/Responses

See response to finding number FA 2019-002.

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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, 2020

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FA 2019-001 Compliance Requirement: Internal Control Impact : Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs:

Controls over Equipment Equipment and Real Property Management Material Weakness Material Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 195GA324N1099 None Identified

Finding Status:

Partially Resolved See Corrective Action/Responses

Management agrees with this finding. Controls are being implemented to ensure complete and accurate tracking of equipment to include physical inventory audits in accordance with federal regulations, 2 CFR 200.313. School Nutrition employed an Inventory Specialist in May 2020. The Inventory Specialist and the Finance Capital Asset team conducted physical inventories of all School District locations in the first quarter of 2021.

Estimated Completion Date: June 30, 2021

Contact Person: Charles Burbridge, CFO Telephone: (678) 676-1200 E-mail: Charles_Burbridge@dekalbschoolsga.org

FA 2019-002 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Numbers: Questioned Costs:

Inadequate Controls over Procurement, Suspension and Debarment Procurement, Suspension and Debarment Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Georgia Department of Education Special Education Cluster (CFDA 84.027 and 84.173) H027A170073, H027A180073, H173A170081, H173A180081 None Identified

Finding Status:

Unresolved See Corrective Action Responses

Management agrees with this finding. A new Special Education Director has been employed. Corrective action has already occurred and the Special Education Department now ensures, prior to procuring services, that an adequate number of rate, or price quotations are obtained from qualified sources. Procedures and policies are designed and implemented to ensure compliance with the procurement provisions of 2 CFR 200.320.

Estimated Completion Date: June 30, 2021

Contact Person: Charles Burbridge, CFO Telephone: (678) 676-1200 E-mail: Charles_Burbridge@dekalbschoolsga.org

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Management's Corrective Action Plan

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