Annual financial report 2022 June 30 DeKalb County Board of Education, Stone Mountain, Georgia, including independent auditor's report

ANNUAL FINANCIAL REPORT FISCAL YEAR 2021
DeKalb County Board of Education
Stone Mountain, Georgia
Including Independent Auditor's Report
Kristina A. Turner | Deputy State Auditor Greg S. Griffin | State Auditor

DeKalb County Board of Education

Table of Contents Section I

Financial Independent Auditor's Report

Required Supplementary Information

Management's Discussion and Analysis

i

Exhibits

Basic Financial Statements

Government-Wide Financial Statements

A

Statement of Net Position

1

B

Statement of Activities

2

Fund Financial Statements

C

Balance Sheet

Governmental Funds

3

D

Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Position

4

E

Statement of Revenues, Expenditures and Changes in Fund

Balances

Governmental Funds

5

F

Reconciliation of the Governmental Funds Statement of

Revenues, Expenditures and Changes in Fund Balances

to the Statement of Activities

6

G Notes to the Basic Financial Statements

8

Schedules

Required Supplementary Information

1 Schedule of Proportionate Share of the Net Pension Liability

Teachers Retirement System of Georgia

39

2 Schedule of Contributions Teachers Retirement System of Georgia

40

3 Schedule of Proportionate Share of the Net Pension Liability

Employees' Retirement System of Georgia

41

4 Schedule of Contributions Employees' Retirement System of Georgia

42

5 Schedule of Proportionate Share of the Net Pension Liability Public

School Employees Retirement System of Georgia

43

DeKalb County Board of Education

Table of Contents Section I

Schedules

Required Supplementary Information

6 Schedule of Proportionate Share of the Net OPEB Liability

School OPEB Fund

44

7 Schedule of Contributions School OPEB Fund

45

8 Notes to the Required Supplementary Information

46

9 Schedule of Revenues, Expenditures and Changes in Fund

Balances - Budget and Actual General Fund

48

Supplementary Information

10 Schedule of State Revenue

49

11 Schedule of Approved Local Option Sales Tax Projects

50

Section I Financial

Greg S. Griffin State Auditor
INDEPENDENT AUDITOR'S REPORT
The Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education
and Mrs. Cheryl Watson-Harris, Superintendent and Members of the DeKalb County Board of Education
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of the DeKalb County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the School District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As described in Note 2 to the financial statements, in 2021, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The School District restated beginning balances for the effect of GASB Statement No. 84. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements.
The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we will also issue our report dated March 31, 2022 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. That report will be issued under separate cover. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance.
A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,
Greg S. Griffin State Auditor
March 31, 2022

DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
INTRODUCTION
The discussion and analysis of the DeKalb County Board of Education's (School District) financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2021. The intent of this discussion and analysis is to look at the School District'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 School District's financial performance.
The reporting model is a combination of both government-wide financial statements and fund financial statements. The basic financial statements contain three components:
1. Government-wide financial statements including the Statement of Net Position and the Statement of Activities which provide a long-term view of the School District's finances and presents on the full accrual basis of accounting.
2. Fund financial statements including the Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances that provides increased detail on the School District's short-term performance by major fund and presents on the modified accrual basis of accounting.
3. Notes to the financial statements.
FINANCIAL HIGHLIGHTS
Key financial highlights for 2021 are as follows:
On the full accrual, government-wide financial statements:
In total, net position increased $57.04 million over the prior year restated net position, due to an increase funding in excess of program expenditures, primarily driven by increases in property tax revenue, federal grant revenue and Special Purpose Local Option Sales Tax (SPLOST) revenue. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities and deferred inflows of resources.
Long-Term Liabilities decreased from $243.65 million in the prior year to $172.89 million in the current as the School District continues to reduce overall debt. Principal payments made on the Series 2017 General Obligation Bonds and payments made on the claims and judgements made up $65.00 million of the overall debt reduction.
The School District had $1.44 billion in expenses relating to governmental activities, of which only $698 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $797.50 million were adequate to provide for these program deficits.
General revenues, as stated on the Statement of Activities accounted for $797.50 million or about 53% of all revenues, while program specific revenues in the form of charges for services, grants, and contributions accounted for the remainder.
i

DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021
On the modified accrual, fund financial statements:
Among major funds, the general fund has $1.34 billion in revenues and $1.28 billion in expenditures. The general fund's increase in fund balance was $58.58 million, which is an increase from the prior year decrease of $0.49 million. The fund balance improvement is largely attributable to revenue growth experienced in property tax collections along with increases in federal grant revenue. Increases in federal grant revenue were attributable to the new grant cluster established as part of the federal Elementary and Secondary School Emergency Relief (ESSER) funds. These revenue increases paired against modest pandemic related declines in incurred expenditures to have an overall favorable impact on general fund balance. The fund balance reflects the full accrual of all contracted salaries and benefits unpaid on June 30 in full compliance with GASB No. 34 regulations.
The capital projects fund had $144.46 million in revenues and $73.42 million in expenditures. An additional $40.18 million was transferred out of the capital projects fund into the debt service fund to pay general obligation bond principal and interest. The capital project fund balance of $344.57 million was $30.87 million more than the prior year, driven by revenue increases in SPLOST revenue coupled with anticipated declines in incurred capital outlay expenditures as part of project life-cycles on SPLOST referendum projects.
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 School District as a financial whole, or as an entire operating entity.
The Statement of Net Position and Statement of Activities provide information about the activities of the whole School District, presenting both an aggregate view of the School District'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 School District's most significant funds. In the case of the School District, the general fund is by far the most significant fund.
Reporting the School District as a Whole
Statement of Net Position and the Statement of Activities
While this document includes a number of the funds used by the School District to provide programs and activities, a view of the School District as a whole requires looking at all financial transactions to ask the question, "How did we do financially during 2021?" The Statement of Net Position and the Statement of Activities answer this question. These statements include all assets and liabilities using the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid.
These two statements report the School District's net position and changes in net position. This change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be a result of many factors, some financial, some not. Nonfinancial factors include the School District's property tax digest base, facility conditions, required educational programs and other factors.
ii

DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 In the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: Governmental Activities - All of the School District'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 School District's Most Significant Funds Fund Financial Statements Fund financial reports provide detailed information about the School District's major funds. The School District uses many funds to account for a multitude of financial transactions. However, these fund financial statements focus on the School District's most significant funds. The School District's major governmental funds are the general fund, capital projects fund, and the debt service fund. Governmental Funds: Most of the School District'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 School District's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements.
iii

DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

The School District as a Whole

The perspective of the Statement of Net Position is of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal year 2021 compared to fiscal year 2020.

Table 1 Net Position

Assets Current and Other Assets Capital Assets, Net
Total Assets
Deferred Outflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Outflows of Resources
Liabilities Current Liabilities Net Pension Liability Net OPEB Liability Other Long-Term Liabilities
Total Liabilities
Deferred Inflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Inflows of Resources
Net Position Net Investment in Capital Assets Restricted Unrestricted (Deficit)
Total Net Position

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020 (1)

$

731,068,105.01 $

618,558,558.53

1,657,908,958.92

1,647,414,285.32

2,388,977,063.93

2,265,972,843.85

381,104,126.97 194,213,482.00
575,317,608.97

356,082,818.30 72,049,293.00
428,132,111.30

175,632,355.23 1,281,485,515.00
914,081,630.00 172,888,376.16
2,544,087,876.39

165,274,096.79 1,122,765,085.00
770,250,780.00 243,650,084.66
2,301,940,046.45

90,837.00 187,753,559.00
187,844,396.00

27,198,179.00 192,376,304.00
219,574,483.00

1,575,219,170.19 350,433,646.75
(1,693,290,416.43)

1,515,788,695.72 332,619,857.31
(1,675,818,127.33)

$

232,362,400.51 $

172,590,425.70

(1) The amounts reported for fiscal year 2020 do not reflect the effect of the restatement of net position due to GASB No. 84.

iv

DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Table 2 shows the Changes in Net Position for fiscal year ending 2021 compared to fiscal year 2020.

Revenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions

Table 2 Change in Net Position

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020 (1)

$ 1,307,272.15 $ 3,132,924.90

685,222,070.61

681,738,195.61

11,902,437.05

23,903,969.38

Total Program Revenues
General Revenues: Property Taxes - Maintenance and Operations Sales Tax - Special Purpose Local Option Tax for Capital Projects Other Sales Taxes Investment Earnings Miscellaneous

698,431,779.81

708,775,089.89

639,075,602.81 132,327,044.52
19,905,786.52 114,699.56
6,080,414.41

589,793,359.93 118,054,293.03
14,777,275.09 2,336,734.53
33,036,382.10

Total General Revenues

797,503,547.82

757,998,044.68

Total Revenues

1,495,935,327.63 1,466,773,134.57

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 Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Service Enterprise Operations Food Services Interest on Debt
Total Expenses
Change in Net Position

928,611,856.78
80,409,973.43 51,091,837.23 16,122,919.32 19,737,096.50 82,978,001.91 10,469,698.89 117,455,731.84 55,771,445.31 24,547,559.59
1,005,051.52
2,628.13 3,923,857.47 42,939,108.97 3,830,294.34
1,438,897,061.23
57,038,266.40

916,292,587.24
84,620,406.28 37,167,945.01 15,593,491.01 19,984,071.21 79,448,866.04
9,218,555.52 114,063,984.02
65,693,753.51 22,954,048.78
1,119,655.92
1,259,945.99 59,220,480.30 5,311,194.17
1,431,948,985.00
34,824,149.57

Beginning Net Position, Restated Ending Net Position

175,324,134.11

137,766,276.13

$ 232,362,400.51 $ 172,590,425.70

(1) The amounts reported for fiscal year 2020 do not reflect the effect of the restatement of net position due to GASB No. 84

v

DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Governmental Activities

Instruction, pupil services and improvement of instructional services comprised the majority of governmental program expenses with 73.68%. Additional needed support services such as student transportation, maintenance, and administration comprise 22.80% of program expenses, while non-instructional services comprise the remaining 3.52%. Non-instructional services provided consist primarily of school nutrition.

The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 below shows, for governmental activities, the net cost of services for fiscal year 2021 compared to fiscal year 2020. That is, it identifies the cost of these services that are supported by tax revenue and unrestricted state entitlements.

Table 3 Governmental Activities

Net Cost of Services

Fiscal Year

Fiscal Year

2021

2020 (1)

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: Community Service Enterprise Operations Food Services Interest on Long-Term Debt

$ 426,473,850.56 $ 392,100,544.37

68,287,973.86 26,066,408.36
2,276,035.11 6,588,940.23 54,253,694.54 10,297,398.95 81,119,194.27 44,729,501.44 23,695,452.54
557,494.88

76,768,381.81 14,262,063.39
1,240,909.44 1,654,662.03 52,205,300.70 8,973,698.19 80,523,073.14 57,722,262.68 22,242,069.09
844,308.21

2,457.45 2,640,116.93 (6,078,591.41)
(444,646.29)

1,259,945.99 8,065,481.90 5,311,194.17

Total Net Cost of Services

$ 740,465,281.42 $ 723,173,895.11

(1) The amounts reported for fiscal year 2020 do not reflect the effect of the restatement of net position due to GASB No. 84.

Program revenues, primarily derived from state and federal funding, make up only 46.69% of total revenue. To cover the revenue shortfall needed to fund vital services, the School District is dependent upon tax revenues to support the full range of governmental activities. The School District's broad tax base is sufficient to cover shortfalls in these operational activities. In addition to program revenues, tax and other general revenues of $797.50 million were collected sufficient to fund the shortfall across instruction and other operational activities.

vi

DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

General Fund Budgeting Highlights

The School District's budget is prepared according to Georgia law and utilizes a zero based, site specific budgeting approach. The most significant budgeted fund is the general fund. The budgeting systems are designed to provide flexibility and ensure proper monitoring of total site based budgets.
The anticipated budgeted revenues for the final general fund budget were $1.41 billion, against anticipated budgeted expenditures of $1.44 billion. Although actual general fund revenues underperformed budgeted estimates, due to the School District's increased emphasis on expenditure control and dedicated efforts to grow fund balance, actual expenditures were less than budgeted. With the sudden advent of virtual learning and extended school closures beyond what was anticipated, the School District experienced pandemic related expenditure budget shortfalls in student transportation, school food, classroom supplies, travel, staff training for conferences and events and repairs and maintenance.

The School District increased fund balance for the general fund by $58.59 million, improving general fund reserves to nearly 15% of annual expenditures. This reserve is vitally important to ensure continuity of services in the advent of an economic downturn, ensuring the School District can continue to offer high quality education to more than 90,000 students.

Capital Assets and Long-Term Liabilities

Capital Assets

At the end of fiscal year 2021, the School District had $1.66 billion invested in capital assets, net of depreciation, all in governmental activities. Table 4 shows fiscal year 2021 balances compared with fiscal year 2020 balances.

Table 4 Capital Assets (Net of Depreciation)

Land Construction in Progress Buildings and Improvement Equipment Land Improvements
Total

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020

$ 71,236,712.56 $ 99,797,962.67
1,403,169,215.60 57,238,203.94 26,466,864.15

71,236,712.56 117,103,154.10 1,369,541,725.36
62,872,561.67 26,660,131.63

$ 1,657,908,958.92 $ 1,647,414,285.32

Long-Term Liabilities
At the year of fiscal year 2021, long-term debt was $172.89 million, a substantial decrease of $70.76 million of the previous year, improving the School District's financial position. The School District's commitment to continued debt reductions helps ensure that future generations of students benefit from higher proportions of funding serving students as opposed to debt, stream-lined financial operations, and increased spending flexibility.

vii

DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021

Table 5 summarizes long-term liabilities outstanding and compares fiscal year 2021 balances to fiscal year 2020 balances.

Table 5 Debt at June 30

General Obligations Bonds

$

Unamortized Bond Premium

Qualified School Construction Bonds

Claims and Judgments

Compensated Absences

Governmental Activities

Fiscal Year

Fiscal Year

2021

2020

57,225,000.00 $ 94,370,000.00

3,122,698.00

5,204,496.00

13,367,429.66 18,485,714.66

90,000,000.00 117,500,000.00

9,173,248.50

8,089,874.00

Total

$ 172,888,376.16 $ 243,650,084.66

The School District maintains an underlying AA and Aa3 credit rating from Standard & Poor's Ratings Services and Moody's Investors Service, respectively.
Current Issues
Federal funding was higher in fiscal year 2021 than fiscal year 2020 primarily due to an increase in federal grant revenue from the ESSER. While combined federal and state revenues decreased primarily due to a reduction in state funding, local revenue within the School District increased.
Property tax revenues previously impacted by the foreclosures and weak sales during the past recession have now recovered. During fiscal year 2021, an increase in property tax funding helped allow the School District to cover shortfalls from state and federal funding. Overall, total general fund revenues have been increasing for the last three years.
During 2021, the School District reduced annual budgeted expenditures to address the challenges and uncertainties brought on by COVID. The reduced annual budget, combined with increased revenues, enabled the School District to eliminate the budgeted shortfall from fiscal year 2020. The increase in fund balance allows the School District to be better insulated against future downturns and equipped to deal with structural changes in expenditures due to virtual classrooms. The School District remains committed to maintaining the School District's financial reserves.
Current financial statements reflect the School District's liability for the unfunded portion of the pension plan administered through the Teachers Retirement System of Georgia (TRS) and Employees' Retirement System of Georgia (ERS). This amount is currently being calculated based on actuarial estimates and is reflected on the government-wide financial statements as deferred inflows and outflows of resources and net pension liability. In addition, the financial statements reflect a similar long-term liability for the net OPEB liability related to post-retirement healthcare benefits.

viii

DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 Factors Bearing on the School District's Future The School District's continues to improve financial flexibility to position itself for the continued response needed to the strain of coronavirus (COVID-19) began to spread worldwide in December 2019, resulting in a severe impact to the United States economy. The return of the School District's fund balance to substantially fully funded relative to internal School District Policy gives the School District more flexibility relative to salary and benefit increases, enhances educational programs, and substantial technological improvements needed, which will greatly increase the efficacy, and thereby student performance, of the School District's educational initiatives. The School District is also continually assessing and preparing for future events that may impact its financial position. Finally, the School District received its five year accreditation certification from the Southern Association of Colleges and Schools (SACS) organization in March 2017 which granted full accreditation out to June 30, 2022. Contacting the School District's Financial Management This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Charles Burbridge, Chief Financial Officer, at the DeKalb County Board of Education, 1701 Mountain Industrial Boulevard, Stone Mountain, Georgia, 30083.
ix

DeKalb County Board of Education

DEKALB COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2021
ASSETS Cash and Cash Equivalents Accounts Receivable, Net
Interest Taxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation)
Total Assets
DEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Outflows of Resources
LIABILITIES Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Claims Incurred but not Reported (IBNR) Contracts Payable Retainages Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Long-Term Liabilities
Due Within One Year Due in More Than One Year
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plans Related to OPEB Plan
Total Deferred Inflows of Resources
NET POSITION Net Investment in Capital Assets Restricted for
Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit)
Total Net Position

EXHIBIT "A"

GOVERNMENTAL ACTIVITIES

$

557,661,224.57

1,365.64 38,874,132.78
83,121,921.11 47,802,307.11
460,705.02 148,007.17
2,878,441.61 120,000.00 171,034,675.23 1,486,874,283.69 2,388,977,063.93

381,104,126.97 194,213,482.00 575,317,608.97

11,566,394.28 146,317,598.65
2,406,849.14 843,220.17
6,272,550.68 3,162,937.86 4,550,687.08
512,117.37 1,281,485,515.00 914,081,630.00
67,455,083.00 105,433,293.16 2,544,087,876.39

90,837.00 187,753,559.00 187,844,396.00

1,575,219,170.19

1,711,963.80 38,327,250.00 310,394,432.95 (1,693,290,416.43)

$

232,362,400.51

The notes to the basic financial statements are an integral part of this statement.

- 1 -

DEKALB COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021

EXHIBIT "B"

EXPENSES

CHARGES FOR SERVICES

PROGRAM REVENUES

OPERATING

CAPITAL

GRANTS AND CONTRIBUTIONS

GRANTS AND CONTRIBUTIONS

NET (EXPENSES)
REVENUES AND CHANGES IN
NET POSITION

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

Community Services

Food Services

Interest on Long-Term Debt

928,611,856.78 $

9,450.00 $ 496,292,909.35 $ 5,835,646.87 $ (426,473,850.56)

80,409,973.43 51,091,837.23 16,122,919.32 19,737,096.50 82,978,001.91 10,469,698.89 117,455,731.83 55,771,445.31 24,547,559.59 1,005,051.53

92,572.06 -

12,121,999.57 24,821,548.53 13,783,832.85 13,146,958.27 28,724,307.37
165,346.59 36,266,861.21
9,713,851.81 711,221.84
447,556.65

203,880.34
63,051.36 1,198.00 6,953.35
69,676.35 1,235,520.00
140,885.21 -

(68,287,973.86) (26,066,408.36)
(2,276,035.11) (6,588,940.23) (54,253,694.54) (10,297,398.95) (81,119,194.27) (44,729,501.44) (23,695,452.54)
(557,494.88)

3,923,857.47 2,628.13
42,939,108.97 3,830,294.34

1,205,173.95 -
76.14 -

78,566.59 170.68
48,946,939.30 -

70,684.94 4,274,940.63

(2,640,116.93) (2,457.45)
6,078,591.41 444,646.29

Total Governmental Activities

$ 1,438,897,061.23 $ 1,307,272.15 $ 685,222,070.61 $ 11,902,437.05

(740,465,281.42)

General Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous Total General Revenues

639,075,602.81
132,327,044.52 19,905,786.52 114,699.56 6,080,414.41
797,503,547.82

Change in Net Position

57,038,266.40

Net Position - Beginning of Year (Restated)

175,324,134.11

Net Position - End of Year

$

232,362,400.51

The notes to the basic financial statements are an integral part of this statement.

- 2 -

ASSETS Cash and Cash Equivalents Accounts Receivable, Net
Interest Taxes State Government Federal Government Local Other Inventories Prepaid Items
Total Assets
LIABILITIES Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Unearned Revenues
Total Liabilities
DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes Unavailable Revenue - Federal Revenue
Total Deferred Inflows of Resources
FUND BALANCES Nonspendable Restricted Assigned Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources, and Fund Balances

DEKALB COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2021

GENERAL FUND

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

EXHIBIT "C" TOTAL

$

215,036,971.94 $ 342,576,648.12 $

26,807,008.40
83,121,921.11 47,802,307.11
460,705.02 148,007.17
2,878,441.61 120,000.00

1,365.64 12,067,129.38
-

$ 376,375,357.36 $

354,645,143.14 $

47,604.51 $ 557,661,224.57

-

1,365.64

-

38,874,137.78

-

83,121,921.11

-

47,802,307.11

-

460,705.02

-

148,007.17

-

2,878,441.61

-

120,000.00

47,604.51 $

731,068,110.01

$

9,212,293.87 $

146,317,598.65

2,404,401.96

-

-

512,117.37

158,446,411.85

2,354,100.41 $ -
2,447.18 3,162,937.86 4,550,687.08
10,070,172.53

-

$

11,566,394.28

-

146,317,598.65

-

2,406,849.14

-

3,162,937.86

-

4,550,687.08

-

512,117.37

-

168,516,584.38

13,397,520.45

-

14,119,386.57

27,516,907.02

-

-

13,397,520.45

14,119,386.57

-

27,516,907.02

2,998,441.61 1,409,520.22
4,171,035.91 181,833,040.75 190,412,038.49

344,574,970.61
344,574,970.61

47,604.51
47,604.51

2,998,441.61 346,032,095.34
4,171,035.91 181,833,040.75 535,034,613.61

$ 376,375,357.36 $

354,645,143.14 $

47,604.51 $

731,068,105.01

The notes to the basic financial statements are an integral part of this statement.

-3-

DEKALB COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION JUNE 30, 2021

EXHIBIT "D"

Total fund balances - governmental funds (Exhibit "C")
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Land Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation
Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liability Net OPEB liability
Deferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. Related to pensions Related to OPEB
Taxes that are not available to pay for current period expenditures are deferred in the funds.
Grant receipts that are not available to pay for current period expenditures are deferred in the funds.
Long-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. Bonds payable Accrued interest payable Qualified School Construction Bonds Compensated absences payable Unamortized bond premiums Claims incurred but not reported (IBNR) Claims and judgments payable
Net position of governmental activities (Exhibit "A")

$

535,034,613.61

$

71,236,712.56

99,797,962.67

2,011,729,646.69

155,249,892.77

41,947,744.14

(722,052,999.91)

1,657,908,958.92

$

(1,281,485,515.00)

(914,081,630.00)

(2,195,567,145.00)

$

381,013,289.97

6,459,923.00

387,473,212.97 13,397,520.45 14,119,386.57

$

(57,225,000.00)

(843,220.17)

(13,367,429.66)

(9,173,248.50)

(3,122,698.00)

(6,272,550.68)

(90,000,000.00)

$

(180,004,147.01) 232,362,400.51

The notes to the basic financial statements are an integral part of this statement.

- 4 -

DEKALB COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021

EXHIBIT "E"

GENERAL FUND

REVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues

$

642,873,779.03 $

19,905,786.52

528,434,328.53

143,219,619.93

1,307,272.15

93,296.89

6,071,449.48

1,341,905,532.53

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 Community Services Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures
Revenues over (under) Expenditures

798,669,002.66
71,373,205.17 44,601,191.77 14,248,824.22 45,667,876.73 73,495,770.23 9,615,067.30 110,960,542.51 48,269,259.68 20,394,657.51
965,375.78 3,923,387.17
2,628.13 41,120,109.85
13,674.34
1,283,320,573.05 58,584,959.48

OTHER FINANCING SOURCES (USES)

Transfers In

-

Transfers Out

-

Total Other Financing Sources (Uses)

-

Net Change in Fund Balances

58,584,959.48

Fund Balances - Beginning (Restated)

131,827,079.01

Fund Balances - Ending

$

190,412,038.49 $

CAPITAL PROJECTS
FUND

-

$

132,327,044.52

7,828,660.34

-

-

21,402.67

4,287,809.05

144,464,916.58

6,215,366.26
2,248,882.29
48,862.00 1,353,060.57 2,032,150.00 1,274,286.00 51,873,945.72
5,118,285.34 3,251,642.00 73,416,480.18 71,048,436.40
(40,176,900.00) (40,176,900.00)
30,871,536.40
313,703,434.21
344,574,970.61 $

DEBT SERVICE
FUND

TOTAL

-

$

642,873,779.03

-

152,232,831.04

-

536,262,988.87

-

143,219,619.93

-

1,307,272.15

-

114,699.56

-

10,359,258.53

-

1,486,370,449.11

-
-
37,145,000.00 3,031,900.00
40,176,900.00 (40,176,900.00)

804,884,368.92
71,373,205.17 46,850,074.06 14,248,824.22 45,667,876.73 73,495,770.23
9,663,929.30 112,313,603.08 50,301,409.68 21,668,943.51
965,375.78 3,923,387.17
2,628.13 41,120,109.85 51,887,620.06
42,263,285.34 6,283,542.00 1,396,913,953.23 89,456,495.88

40,176,900.00 -
40,176,900.00
-
47,604.51
47,604.51 $

40,176,900.00 (40,176,900.00)
-
89,456,495.88
445,578,117.73
535,034,613.61

The notes to the basic financial statements are an integral part of this statement.

- 5 -

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, 2021

EXHIBIT "F"

Net change in fund balances total governmental funds (Exhibit "E")
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. Capital outlay Depreciation expense
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position.
Taxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Taxes Federal grants IRS subsidy
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. Qualified School Construction Bonds payment Bond principal retirements Amortization of bond premium
District pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense
Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Accrued interest on issuance of bonds Compensated absences Claims Incurred but not Reported (IBNR) Claims and judgments
Change in net position of governmental activities (Exhibit "B")

$

89,456,495.88

$

55,038,742.04

(44,540,164.94)

10,498,577.10 (3,903.50)

$

(3,798,176.22)

14,119,386.57

(1,436,683.91)

8,884,526.44

$

5,118,285.00

37,145,000.00

2,081,798.00

44,345,083.00

$

(106,591,779.33)

(17,043,916.00)

(123,635,695.33)

$

371,450.00

(1,083,374.50)

705,107.31

27,500,000.00

$

27,493,182.81 57,038,266.40

The notes to the basic financial statements are an integral part of this statement.

- 6 -

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DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
Reporting Entity
The DeKalb County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board comprised of seven members elected by the voters and a Superintendent appointed by the Board. The School District is composed of a diverse combination of numerous locations that consist of administrative offices, traditional schools and nontraditional charter schools. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below.
Basis of Presentation
The School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness.
Government-Wide Statements:
The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component units. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
The Statement of Net Position presents the School District's assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows:
1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets.
2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation.
3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified.
- 8 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements
The fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.
The School District reports the following major governmental funds:
The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund.
The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), bond proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets.
The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general longterm principal and interest.
Basis of Accounting
The basis of accounting determines when transactions are reported on the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.

- 9 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt 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 are reported as other financing sources.
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
New Accounting Pronouncements
In fiscal year 2021, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The cumulative effect of the GASB Statement No. 84 is described in the restatement note.
In fiscal year 2021, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations.

- 10 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Receivables
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
Inventories
Consumable Supplies
On the basic financial statements, consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for the consumable supplies inventory whereby an asset is recorded when supplies are purchased, and expenses are recorded at the time the supplies are consumed.
Food Inventories
On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out). 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 future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements.
Capital Assets
On the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art.
Capital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements.
Depreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives.
Amortization of intangible assets such as water, timber and mineral rights, easements, patents, trademarks, copyrights, and internally generated software is computed using the straight-line method over the estimated useful lives of the assets.

- 11 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Capitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows:

Capitalization Policy

Estimated Useful Life

Land Land Improvements Buildings and Additions Building Improvements Equipment
Outdoor Equipment Vehicles Kitchen Equipment Computer Hardware Miscellaneous Equipment Buses Intangible Assets - Software Intangible Assets - Other

ALL $ 100,000.00 $ 100,000.00 $ 100,000.00

$

5,000.00

$

5,000.00

$

5,000.00

$

5,000.00

$

5,000.00

$

5,000.00

$ 1,000,000.00

$ 100,000.00

N/A 20 to 40 years Up to 50 years Up to 50 years
15 to 20 years 8 years 15 years 5 years
5 to 20 years 15 years
5 to 10 years 20 years

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time.
Compensated Absences
Compensated absences payable consists of vacation leave employees earned based on services already rendered.
Vacation leave of 10 to 20 days is awarded to all full-time personnel employed on a twelve-month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized prior to December 31 may be carried over to the next calendar year, providing such vacation leave does not exceed 30 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end.

- 12 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Members of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements.
Long-Term Liabilities and Bond Discounts/Premiums
In the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straightline method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued.
In the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Post-Employment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Fund Balances
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.
The School District's fund balances are classified as follows:
Nonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.
Restricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.

- 13 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Committed consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

Assigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes.

Unassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance.

Use of Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

Property Taxes

The DeKalb County Board of Commissioners adopted the property tax levy for the 2020 tax digest year (calendar year) on July 23, 2020 (levy date) based on property values as of January 1, 2020. Taxes were due on November 15, 2020 (lien date) and could be paid in two installments on September 30, 2020 and November 15, 2020 (due dates) . Taxes collected within the current fiscal year or within 60 days after year-end on the 2020 tax digest are reported as revenue in the governmental funds for fiscal year 2021. The DeKalb County Tax Commissioner bills and collects the property taxes for the School District, withholds 1.25% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2021, for maintenance and operations amounted to $609,637,985.84.

The tax millage rate levied for the 2020 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

23.08 mills

Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $33,235,793.19 during fiscal year ended June 30, 2021.
Sales Taxes
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $132,327,044.52 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.

- 14 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 3: BUDGETARY DATA
The budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America.
The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Superintendent is authorized by the Board to approve adjustments of no more than 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 10% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board.
See the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review.
NOTE 4: DEPOSITS AND CASH EQUIVALENTS
Collateralization of Deposits
O.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. At June 30, 2021, $127,447,466.38 of deposits 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 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,
- 15 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
Categorization of Deposits
Custodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2021, School District had deposits with a carrying amount of $491,705,204.42 and a bank balance of $493,622,217.83. The bank balances insured by Federal depository insurance were $500,000.00 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $204,543,716.88. Additionally, $127,447,466.38 of the School District's bank balance was uninsured and uncollateralized.
At June 30, 2021, $161,131,034.57 of the School District's bank balance was in the State's Secure Deposit Program (SDP).
The School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75% and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians.
In accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized.

- 16 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Reconciliation of cash and cash equivalents balances to carrying value of deposits:

Cash and cash equivalents Statement of Net Position

$ 557,661,224.57

Less: Cash on hand Investment pools reported as cash and cash equivalents
Georgia Fund 1

97,575.00 65,858,445.15

Total carrying value of deposits - June 30, 2021

$ 491,705,204.42

Categorization of Cash Equivalents
The School District reported cash equivalents of $65,858,445.15 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by 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, 2021 was 36 days.
Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.

- 17 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 5: CAPITAL ASSETS

The following is a summary of changes in the capital assets for governmental activities during the fiscal year:

Balances July 1, 2020

Increases

Decreases

Balances June 30, 2021

Governmental Activities

Capital Assets, Not Being Depreciated:

Land

$

Construction in Progress

Total Capital Assets Not Being Depreciated

71,236,712.56 $

- $

- $

117,103,154.10 51,887,620.06 69,192,811.49

188,339,866.66 51,887,620.06 69,192,811.49

71,236,712.56 99,797,962.67
171,034,675.23

Capital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements

1,943,744,554.94 152,137,935.19 40,740,024.40

67,985,091.75 3,151,121.98 1,207,719.74

39,164.40
-

2,011,729,646.69 155,249,892.77 41,947,744.14

Less Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements
Total Capital Assets, Being Depreciated, Net
Governmental Activities Capital Assets - Net

574,202,829.58 89,265,373.52 14,079,892.77

34,357,601.51 8,781,576.21 1,400,987.22

35,260.90
-

608,560,431.09 98,011,688.83 15,480,879.99

1,459,074,418.66 27,803,768.53

3,903.50 1,486,874,283.69

$ 1,647,414,285.32 $ 79,691,388.59 $ 69,196,714.99 $ 1,657,908,958.92

Current year depreciation expense by function is as follows:

Instruction Support Services
Improvements of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services

$ 36,234,597.36

$ 1,015,839.66 314,155.20 5,969.05 34,645.25 347,164.41
5,533,639.65 701,964.60

7,953,377.82 352,189.76

$ 44,540,164.94

- 18 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 6: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2021, consisted of the following:

Transfers to

Transfers From Capital Projects
Fund

Debt Service Fund

$ 40,176,900.00

Transfers are used to move Special Purpose Local Option Sales Tax (SPLOST) revenues collected in the capital projects fund to the debt service fund to fund the bond principal and interest payments.

NOTE 7: LONG-TERM LIABILITIES

The changes in long-term liabilities during the fiscal year for governmental activities were as follows:

Balance July 1, 2020

Additions

Governmental Activities

Balance

Deductions

June 30, 2021

Due Within One Year

General Obligation (G.O.) Bonds

$

Unamortized Bond Premiums

Qualified School Construction Bonds

Claims and Judgments

Compensated Absences(1)

94,370,000.00 $ 5,204,496.00 18,485,714.66
117,500,000.00 8,089,874.00

- $ 7,314,127.02

37,145,000.00 $ 2,081,798.00 5,118,285.00
27,500,000.00 6,230,752.52

57,225,000.00 $ 37,755,000.00

3,122,698.00

2,081,798.00

13,367,429.66

5,118,285.00

90,000,000.00 22,500,000.00

9,173,248.50

-

$ 243,650,084.66 $ 7,314,127.02 $ 78,075,835.52 $ 172,888,376.16 $ 67,455,083.00

(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements.

General Obligation Debt Outstanding
The School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved Education Special Purpose Local Option Sales Tax (ESPLOST) proceeds. General obligation bonds are direct obligations and pledge the full faith and credit of the School District.
In the event the entity is unable to make the principal and interest payments using proceeds of the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from the general fund or from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for the state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt.

- 19 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Voters have authorized $200,000,000.00 of general obligation debt. Of the total amount originally authorized, $68,975,000.00 remains unissued. General obligation bonds currently outstanding are as follows:

Description

Interest Rate

Issue Date

Maturity Date

Amount Issued

Amount Outstanding

General Government - Series 2017

4.00% 3/2/2017 10/2/2022 $ 131,025,000.00 $ 57,225,000.00

The following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable:

Fiscal Year Ended June 30:

General Obligation Debt

Principal

Interest

Unamortized Bond Premium

2022 2023

$ 37,755,000.00 $ 1,533,900.00 $

19,470,000.00

389,400.00

2,081,798.00 1,040,900.00

Total Principal and Interest $ 57,225,000.00 $ 1,923,300.00 $ 3,122,698.00

Qualified School Construction Bonds (QSCB)
On May 1, 2011, the School District entered into a lease agreement with the Georgia Municipal Association, Inc., for the purchase of a replacement high school. The Georgia Municipal Association, Inc. sold $57,770,000.00 in Qualified School Construction Taxable Certificates of Participation Bonds (QSCB) and $5,690,000.00 in Certificates of Participation Tax-Exempt Bonds to fund the construction of the new school. The lease agreement with Georgia Municipal Association, Inc. provides that the School District owns the high school and is responsible for the payment of principal and interest on the Certificate of Participation and QSCB.
Section 1521 of the American Recovery and Reinvestment Act (ARRA) of 2009 provides for a source of capital at no or at nominal interest rates for costs incurred by School Districts in connection with the construction, rehabilitation or repair of a public-school facility or for the acquisition of land where a school will be built. Investors receive Federal income tax credits at prescribed tax credit rates in lieu of interest, which essentially allows School Districts to borrow without incurring interest costs.
When the stated interest rate on the QSCB results in interest payments that exceed the supplemental interest payments discussed in the preceding paragraph, the School District may apply for a direct cash subsidy payment from the U.S. Treasury which is intended to reduce the stated interest rate to a nominal percentage. To qualify for this subsidy the School District is required to periodically file appropriate documents with the Internal Revenue Service. These subsidy payments do not include the amount of any supplemental interest paid on a QSCB. The interest subsidy received by the School District in fiscal year 2021 was $2,838,256.72, which funded all but $413,385.28 of interest expense due on the QSCB.
The School District's outstanding Qualified School Construction Bonds of $13,367,426.66 contain provisions that in an event of a default, outstanding amounts may become immediately due if the School District is unable to make payment.

- 20 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Debt currently outstanding under Qualified School Construction Bonds is as follows:

Description

Amount Issued

Amount Outstanding

Georgia Municipal Association - COP Series 2011A Georgia Municipal Association - COP Series 2011B

$ 57,770,000.00 $ 5,690,000.00

7,677,429.66 5,690,000.00

$ 63,460,000.00 $ 13,367,429.66

The following is a schedule of total Qualified School Construction Bond payments:

Fiscal Year Ended June 30:

Principal

Interest

2022 2023

$ 5,118,285.00 $ 3,251,643.00

8,249,144.66

1,867,646.00

Total Principal and Interest $ 13,367,429.66 $ 5,119,289.00

Claims and Judgments

On June 9, 2020, the School District Board voted to approve the settlement of the Gold lawsuit, for a breach of contract for $117,500,000.00. The settlement, to be paid out by the School District to the Settlement Administrator over a five-year period is recorded as a long-term liability on the Statement of Net Position.

The following is a schedule of annual settlement payments:

Fiscal Year Ended June 30:

Settlement Payments

2022 2023 2024 2025

$ 22,500,000.00 22,500,000.00 22,500,000.00 22,500,000.00

Total

$ 90,000,000.00

Compensated Absences
Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences.

- 21 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 8: RISK MANAGEMENT

Insurance Commercial Insurance

The School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years.

The School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination.

Workers' Compensation

The School District has established a limited risk management program for workers' compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $1,250,000.00 loss per occurrence, up to the statutory limit.

Changes in the workers' compensation claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in
Estimates

Claims Paid

End of Year Liability

2020 $ 8,060,750.00 $ 6,355,085.58 $ 7,438,177.59 $ 6,977,657.99 2021 $ 6,977,657.99 $ 5,932,415.61 $ 6,637,522.92 $ 6,272,550.68

Unemployment Compensation

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in
Estimates

Claims Paid

End of Year Liability

2020 $

- $

131,221.18 $

131,221.18 $

-

2021 $

- $ 2,415,798.50 $ 2,415,798.50 $

-

- 22 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Surety Bond

The School District purchased a surety bond to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent $ 1,000,000.00

NOTE 9: FUND BALANCE CLASSIFICATION DETAILS

The School District's financial statements include the following amounts presented in the aggregate at June 30, 2021:

Nonspendable

Inventories

$ 2,878,441.61

Prepaid Assets

120,000.00 $

2,998,441.61

Restricted

Bus Replacement

$

926,640.00

Continuation of Federal Programs

482,880.22

Capital Projects

305,723,075.12

Debt Service

38,899,500.00 346,032,095.34

Assigned

School Activity Accounts

4,171,035.91

Unassigned

181,833,040.75

Fund Balance, June 30, 2021

$ 535,034,613.61

When multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds.
It is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of not less than 5% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with O.C.G.A. 20-2-167(a)5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance.

- 23 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 10: SIGNIFICANT COMMITMENTS

Commitments Under Construction Contracts

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2021.

Project

Unearned Executed Contracts (1)

Payments through June 30, 2021 (2)

Towers High School - Capital Renewal Cedar Grove High School New Cross Keys High School Dunwoody High School - Classroom Addition Lakeside High School - Classroom Addition Indian Creek Elementary School Chamblee High School

$

1,797,250.00 $

959,363.66

6,207,805.40

4,390,884.60

2,403,045.25

1,086,094.75

861,050.04

1,110,042.96

982,475.00

317,500.00

2,946,250.50

34,661,219.50

1,011,422.00

114,537.00

$ 16,209,298.19 $ 42,639,642.47

(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainafes payable at year-end.
NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES
Federal Grants
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position.
Litigation
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District.
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Georgia School Personnel Post-Employment Health Benefit Fund
Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board.
- 24 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted.
Contributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $23,164,958.00 for the year ended June 30, 2021. Active employees are not required to contribute to the School OPEB Fund.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2021, the School District reported a liability of $914,081,630.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2019. An expected total OPEB liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2020. At June 30, 2020, the School District's proportion was 6.223462%, which was a decrease of 0.052953% from its proportion measured as of June 30, 2019.

- 25 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

For the year ended June 30, 2021, the School District recognized OPEB expense of $40,208,874.00. At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

OPEB

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual

experience

$

-

99,789,334.00

Chances of assumptions

151,168,801.00

81,333,604.00

Net difference between projected and actual

earnings on OPEB plan investments

2,382,444.00

-

Changes in proportion and differences between School District contributions and proporitonate share of contributions

17,497,279.00

6,630,621.00

School District contributions subsequent to the

measurement date

23,164,958.00

-

Total

$ 194,213,482.00

187,753,559.00

School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30:

OPEB

2022 2023 2024 2025 2026 Thereafter

$ (14,268,414.00)

$ (14,332,351.00)

$ (9,958,331.00)

$ 2,803,027.00

$ 13,932,495.00

$

5,118,539.00

- 26 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Actuarial assumptions: The total OPEB liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2020:
OPEB:

Inflation

2.50%

Salary increases

3.00% 8.75%, including inflation

Long-term expected rate of return

7.30%, compounded annually, net of investment expense, and including inflation

Healthcare cost trend rate Pre-Medicare Eligible Medicare Eligible Ultimate trend rate Pre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate

7.00% 5.25%
4.50% 4.50%

Pre-Medicare Eligible

2029

Medicare Eligible

2023

Mortality rates were based on the mortality tables, as appropriate, with adjustments for mortality improvements based on Scale BB as follows:

For TRS members: The Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table projected generationally with MP-2019 projection scale (set forward one year and adjusted 106%) is used for death prior to retirement and for service retirements and beneficiaries. The Pub-2010 Teachers Mortality Table for Disabled Retirees projected generationally with MP-2019 Projection scale (set forward one year and adjusted 106%) is used for disability retirements. For both, rates of improvement were reduced by 20% for all years prior to the ultimate rate.
For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. Rates of mortality in active service was based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future morality improvement in the tables used by the plan.

- 27 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation which was changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation.

The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2019 valuation were based on a review of recent plan experience done concurrently with the June 30, 2019 valuation.

Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation.

The long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class

Target Allocation

Long-Term Expected Real Rate of Return*

Fixed income Equities

30.00% 70.00%

0.50% 9.20%

Total

100.00%

*Net of Inflation
Discount Rate: In order to measure the total OPEB liability for the School OPEB, a single equivalent interest rate of 2.22% was used as the discount rate, as compared with last year's rate of 3.58%. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation bonds with an average rating of AA or higher (2.21% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118.

- 28 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the collective net OPEB liability of the participating employers calculated using the discount rate of 2.22%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.22%) or 1-percentage-point higher (3.22%) than the current discount rate:

School District's proportionate share of the Net OPEB liability

1% Decrease (1.22%)

Current Discount Rate (2.22%)

1% Increase (3.22%)

$ 1,073,895,112.00 $

914,081,630.00 $ 786,275,482.00

Sensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the collective net OPEB liability of the participating employers, as well as what the collective net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentagepoint higher than the current healthcare cost trend rates:

School District's proportionate share of the Net OPEB liability

1% Decrease

Current Healthcare Cost Trend Rate

1% Increase

$ 761,064,839.00 $

914,081,630.00 $ 1,112,193,927.00

OPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr.
NOTE 13: RETIREMENT PLANS
The School District participates in various retirement plans administered by the State of Georgia, as further explained below.
Teachers Retirement System of Georgia (TRS)
Plan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications.
Benefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death.
- 29 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2021. The School District's contractually required contribution rate for the year ended June 30, 2021 was 19.06% of annual School District payroll, of which 19.03% of payroll was required from the School District and 0.03% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $128,272,082.06 and $180,893.57 from the School District and the State, respectively.
Employees' Retirement System
Plan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.
Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
Contributions: Member contributions under the old plan are 4.00% of annual compensation, up to $4,200.00, plus 6.00% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's total required contribution rate for the year ended June 30, 2021 was 24.66% of annual covered payroll for old plan members of which 19.91% was required from the School District and 4.75%
- 30 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

was contributed on behalf of the School District by the state. Additionally, the School District's total required contribution rate was 24.66% for new plan members and 21.57% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $222,266.91 for the current fiscal year.
Public School Employees Retirement System (PSERS)
Plan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits.
Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $1,906,598.00.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2021, the School District reported a liability of $1,281,485,515.00 for its proportionate share of the net pension liability for TRS ($1,280,155,612.00) and ERS ($1,329,903.00).

- 31 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

The TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows:

School District's proportionate share of the net pension liability

$ 1,280,155,612.00

State of Georgia's proportionate share of the net pension liability associated with the School District

1,742,184.00

Total

$ 1,281,897,796.00

The net pension liability for TRS and ERS was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2020.
At June 30, 2020, the School District's TRS proportion was 5.284677%, which was an increase of 0.069780% from its proportion measured as of June 30, 2019. At June 30, 2020, the School District's ERS proportion was 0.031552%, which was a decrease of 0.002889% from its proportion measured as of June 30, 2019.
At June 30, 2021, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $10,770,643.00.
The PSERS net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2020.
For the year ended June 30, 2021, the School District recognized pension expense of $234,249,473.23 for TRS, $72,467.27 for ERS and $2,167,423.00 for PSERS and revenue of $(764,187.00) for TRS and $2,167,423.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel.

- 32 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

TRS Deferred Outflows of Resources

Deferred Inflows of Resources

ERS

Deferred

Deferred

Outflows of

Inflows of

Resources

Resources

Differences between expected and actual experience

$ 55,751,176.00 $

- $

16,200.00 $

-

Changes of assumptions

131,857,500.00

-

-

-

Net difference between projected and actual earnings on pension plan investments

30,832,761.00

-

18,785.00

-

Changes in proportion and differences

between School District contributions and

proportionate share of contributions

34,133,356.00

-

-

90,837.00

School District contributions subsequent to the measurement date

128,272,082.06

-

222,266.91

-

Total

$ 380,846,875.06 $

- $

257,251.91 $ 90,837.00

The School District contributions subsequent to the measurement date of June 30, 2020 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30:

TRS

ERS

2022 2023 2024 2025

$ 61,529,755.00 $

$ 81,298,261.00 $

$ 78,370,966.00 $

$

31,375,811.00 $

(80,780.00) (13,302.00)
21,801.00 16,429.00

Actuarial assumptions: The total pension liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement:
Teachers Retirement System:

Inflation

2.50%

Salary increases

3.00% 8.75%, average, including inflation

Investment rate of return

7.25%, net of pension plan investment expense, including inflation

Post-retirement benefit increases 1.50% semi-annually

- 33 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2013 June 30, 2018.

Employees' Retirement System:

Inflation

2.75%

Salary increases

3.25% - 7.00%, including inflation

Investment rate of return

7.30%, net of pension plan investment expense, including inflation

Post-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the assumed investment rate of return.

Public School Employees Retirement System:

Inflation

2.75%

Salary increases

N/A

Investment rate of return

7.30%, net of pension plan investment expense, including inflation

Post-retirement benefit increases 1.50% semi-annually

- 34 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Post-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB.

The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the assumed investment rate of return.

The long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class

TRS Target Allocation

ERS/PSERS Target
Allocation

Long-Term Expected Real Rate of Return*

Fixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative

30.00% 51.00%
1.50% 12.40%
5.10% -

30.00% 46.20%
1.30% 12.40%
5.10% 5.00%

(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00%

Total

100.00%

100.00%

* Rates shown are net of the 2/75% assumed rate of inflation with the exception of TRS, which assumed a rate of 2.50% rate of inflation.
Discount Rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plans' fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

Sensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% and 8.30%) than the current rate:

Teachers Retirement System:

1% Decrease (6.25%)

Current Discount Rate (7.25%)

1% Increase (8.25%)

School District's proportionate share of the net pension liability

$ 2,030,021,208.00 $

1,280,155,612.00 $ 665,480,825.00

Employees' Retirement System:

1% Decrease (6.30%)

Current Discount Rate (7.30%)

1% Increase (8.30%)

School District's proportionate share

of the net pension liability

$

1,870,940.00 $

1,329,903.00 $

868,191.00

Pension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publicly available at www.trsga.com/publications and http://www.ers.ga.gov/financials.
DEFINED CONTRIBUTION PLAN
On July 11, 1983, DeKalb County Board of Education began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group.
The Board selected Fidelity Investments as the provider of this plan. For each employee covered under PSERS, the Board began contributing to the plan an amount equal to 8% of the employee's base pay. The employee becomes vested in the plan when the first contribution is made. Funds accumulated in the employer paid accounts become available to the employee upon retirement or when the employee reaches age 59.
Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2021 2020 2019

100% 100% 100%

$

3,841,590.00

$

4,683,292.00

$

4,115,503.00

- 36 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

EXHIBIT "G"

NOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION AND FUND BALANCE

For fiscal year 2021, the School District made prior period adjustments due to the adoption of GASB Statement No, 84, as described in "New Accounting Pronouncements," which requires the restatement of the June 30, 2020 net position in governmental activities and fund balance in the general fund and fiduciary funds. These changes are in accordance with generally accepted accounting principles.

Net Position, July 1, 2020, as previously reported

$ 172,590,425.70

Prior Period Adjustment - Implementation of GASB 84: School Activity Account Reclassification

2,733,708.41

Net Position, July 1, 2020, as restated

$ 175,324,134.11

Fund Balance (General Fund), July 1, 2020, as previously reported $ 129,093,370.60

Prior Period Adjustment - Implementation of GASB 84: School Activity Account Reclassification

2,733,708.41

Fund Balance (General Fund), July 1, 2020, as restated

$ 131,827,079.01

Funds Held for Others of $2,733,708.41, previously presented in Fiduciary Funds, was reclassified to Net Position and Fund Balance (General Fund).
NOTE 15: TAX ABATEMENTS
DeKalb County Development Authority enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to DeKalb County.
For the fiscal year ended June 30, 2021, DeKalb County abated property taxes due to the School District on the 2020 tax levy totaling $11,144,845.39. Included in that amount abated, the following are individual abatement agreements to Dunwoody Development Authority that exceeded 10 percent of the total amount abated:
A 95 percent property tax abatement on residential and retail rental property. The abatement amounted to $1,554,964.73.
A 95 percent property tax abatement on residential and retail rental property. The abatement amounted to $2,159,877.64.

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DEKALB COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "1"

For the Year Ended
June 30

School District's proportion
of the Net Pension Liability (NPL)

School District's proportionate share of the NPL

State of Georgia's proportionate share of the NPL associated with the School
District

Total

School District's covered payroll

School District's proportionate share of the
NPL as a percentage of
its covered payroll

Plan fiduciary net position
as a percentage of the total
pension liability

2021 2020 2019 2018 2017 2016 2015

5.284677% 5.214897% 5.138067% 5.018739% 4.854299% 4.712696% 4.712930%

$ 1,280,155,612.00 $ 1,121,343,866.00 $ 953,735,293.00 $ 932,748,101.00 $ 1,001,496,009.00 $ 717,461,169.00 $ 595,416,542.00

$ 1,742,184.00 $ 1,502,609.00 $ 1,246,448.00 $ 5,136,236.00 $ 7,883,562.00 $ 5,869,616.00 $ 4,485,967.00

$ 1,281,897,796.00 $ 1,122,846,475.00 $ 954,981,741.00 $ 937,884,337.00 $ 1,009,379,571.00 $ 723,330,785.00 $ 599,902,509.00

$ 682,862,278.03 $ 637,487,717.00 $ 613,539,685.00 $ 579,389,485.00 $ 536,892,957.00 $ 501,452,947.00 $ 483,104,965.00

187.47% 175.90% 155.45% 160.99% 186.54% 143.08% 123.25%

77.01% 78.56% 80.27% 79.33% 76.06% 81.44% 84.03%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 39 -

DEKALB COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "2"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered payroll

Contribution as a percentage of covered payroll

2021 2020 2019 2018 2017 2016 2015 2014 2013 2012

$

128,272,082.06 $

$

144,220,337.56 $

$

133,220,772.00 $

$

103,010,906.00 $

$

82,226,356.00 $

$

76,015,170.00 $

$

65,941,063.00 $

$

59,325,216.00 $

$

56,336,367.00 $

$

56,477,235.00 $

128,272,082.06 $ 144,220,337.56 $ 133,220,772.00 $ 103,010,906.00 $ 82,226,356.00 $
76,015,170.00 $ 65,941,063.00 $ 59,325,216.00 $ 56,336,367.00 $ 56,477,235.00 $

-

$ 673,940,061.13

-

$ 682,862,278.03

-

$ 637,487,717.00

-

$ 613,539,685.00

-

$ 579,389,485.00

-

$ 536,892,957.00

-

$ 501,452,947.00

-

$ 483,104,365.00

-

$ 493,745,552.00

-

$ 549,402,309.00

19.03% 21.12% 20.90% 16.79% 14.19% 14.16% 13.15% 12.28% 11.41% 10.28%

- 40 -

DEKALB COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "3"

For the Year Ended June 30
2021 2020 2019 2018 2017 2016 2015

School District's proportion of the Net Pension Liability (NPL)

School District's proportionate share of
the NPL

School District's covered payroll

School District's proportionate share of the NPL as a percentage
of covered payroll

Plan fiduciary net position as a
percentage of total pension liability

0.031552% $ 0.034441% $ 0.036753% $ 0.043448% $ 0.036208% $ 0.037839% $ 0.038132% $

1,329,903.00 $ 1,421,219.00 $ 1,510,928.00 $ 1,764,569.00 $ 1,712,790.00 $ 1,533,008.00 $ 1,430,186.00 $

799,520.44 868,144.00 1,065,707.00 1,035,482.00 841,877.00 917,547.00 900,182.00

166.34% 163.71% 141.78% 170.41% 203.45% 167.08% 158.88%

76.21% 76.74% 76.68% 76.33% 72.34% 76.20% 77.99%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 41 -

DEKALB COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "4"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required contribution

Contribution deficiency (excess)

School District's covered payroll

2021

$

2020

$

2019

$

2018

$

2017

$

2016

$

2015

$

2014

$

2013

$

2012

$

222,266.91 $ 197,161.74 $ 215,126.00 $
264,402.00 $ 256,903.00 $ 208,112.00 $ 201,493.00 $
166,174.00 $ 104,823.00 $ 76,992.00 $

222,266.91 $ 197,161.74 $ 215,126.00 $
264,402.00 $ 256,903.00 $ 208,112.00 $ 201,493.00 $
166,174.00 $ 104,823.00 $ 76,992.00 $

-

$

901,325.62

-

$

799,520.44

-

$

868,144.00

-

$

1,065,707.00

-

$

1,035,482.00

-

$

841,877.00

-

$

917,547.00

-

$

900,182.00

-

$

723,163.00

-

$

689,713.00

Contribution as a percentage of covered payroll
24.66% 24.66% 24.78% 24.81% 24.81% 24.72% 21.96% 18.46% 14.50%
11.16%

- 42 -

DEKALB COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA

SCHEDULE "5"

For the Year Ended
June 30

School District's proportion of the Net Pension Liability (NPL)

School District's proportionate share of the NPL

State of Georgia's proportionate
share of the NPL associated with the School District

Total

School District's covered payroll

School District's proportionate share of the NPL as a percentage of its covered
payroll

Plan fiduciary net position as a percentage
of the total pension liability

2021 2020 2019 2018 2017

0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $

-

$ 10,770,643.00 $ 10,770,643.00 $ 19,352,396.36

-

$ 10,297,967.00 $ 10,297,967.00 $ 19,320,252.98

-

$ 9,955,524.00 $ 9,955,524.00 $ 18,782,082.78

-

$ 8,973,183.00 $ 8,973,183.00 $ 18,179,667.63

-

$ 11,997,914.00 $ 11,997,914.00 $ 19,214,219.57

N/A

84.45%

N/A

85.02%

N/A

85.26%

N/A

85.69%

N/A

81.00%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 43 -

DEKALB COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY
SCHOOL OPEB FUND

SCHEDULE "6"

For the Year Ended
June 30
2021 2020 2019 2018

School District's proportion of the Net
OPEB Liability (NOL)

School District's proportionate share
of the NOL

State of Georgia's proportionate share of the NOL associated with the School
District

Total

School District's covered-employee
payroll

School District's proportionate share of the
NOL as a percentage of
its coveredemployee payroll

Plan fiduciary net position as a percentage of the total
OPEB liability

6.223462% $ 914,081,630.00 $ 6.276415% $ 770,250,780.00 $ 6.228755% $ 791,655,645.00 $ 6.123753% $ 860,384,832.00 $

-

$ 914,081,630.00 $ 649,698,559.00

-

$ 770,250,780.00 $ 587,544,464.00

-

$ 791,655,645.00 $ 552,356,240.00

-

$ 860,384,832.00 $ 531,360,186.00

140.69% 131.10% 143.32% 161.92%

3.99% 4.63% 2.93% 1.61%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 44 -

DEKALB COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND

SCHEDULE "7"

For the Year Ended June 30

Contractually required contribution

Contributions in relation to the contractually required
contribution

Contribution deficiency (excess)

School District's covered-employee
payroll

Contribution as a percentage of
covered-employee payroll

2021 2020 2019 2018 2017

$

23,164,958.00 $

$

21,046,297.00 $

$

33,802,837.00 $

$

32,283,037.00 $

$

31,929,735.00 $

23,164,958.00 $ 21,046,297.00 $ 33,802,837.00 $ 32,283,037.00 $ 31,929,735.00 $

-

$ 654,779,255.99

-

$ 649,698,559.00

-

$ 587,544,464.00

-

$ 552,356,240.00

-

$ 531,360,186.00

3.54% 3.24% 5.75% 5.84% 6.01%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

- 45 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2021

SCHEDULE "8"

Teachers Retirement System Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience.

On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life
lcllelCYYllllllC Actuaries' projection scale BB (set forward one year for males).

On May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%.

In 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.

Employees' Retirement System Changes of benefit terms: A new benefit tier was added for members joining the System on and after July 1, 2009. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016, and a one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. Two one-time 2% payments were granted to certain retirees and beneficiaries effective July 2018 and January 2019. Two onetime 3% payments were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal and salary increases.

On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 actuarial valuation.
Public School Employees Retirement System Changes of benefit terms: The member contribution rate was increased from $4.00 to $10.00 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of credible service effective July 1, 2017. The monthly benefit accrual was increased from $15.00 to $15.25 per year of credible service effective July 1, 2018. The monthly benefit accrual was increased from $15.25 to $15.50 per year of credible service effective July 1, 2019. A 2% cost-of-living adjustment (COLA) was granted to certain retirees and beneficiaries effective July 2016, another July 2017, and another July 2018. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January 2020.
Changes of assumptions: JllCClclel 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted lllCY
On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to YlelllllClClClC
On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. The assumed investment rate of return remained at 7.30% for the June 30, 2019 valuation.

- 46 -

DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2021

SCHEDULE "8"

School OPEB Fund Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation.
The June 30, 2019 decremental valuation were changed to reflect the Teachers Retirement Systems experience study.
The discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020.

- 47 -

DEKALB COUNTY BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2021

SCHEDULE "9"

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 Community Services Food Services Operation Capital Outlay Debt Service Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES(USES) Operating Transfers From Other Funds Operating Transfers To Other Funds Other Uses Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning (Restated)
Fund Balances - Ending

NONAPPROPRIATED BUDGETS

ORIGINAL

FINAL

ACTUAL AMOUNTS

VARIANCE OVER/UNDER

$ 624,869,089.00 $ 624,869,089.00 $

642,873,779.03 $

12,000,000.00

12,000,000.00

19,905,786.52

497,766,522.00

499,288,735.95

528,434,328.53

128,827,317.00

234,585,390.39

143,219,619.93

12,979,062.00

12,992,512.00

1,307,272.15

2,501,100.00

2,560,690.84

93,296.89

22,968,618.00

26,508,377.82

6,071,449.48

1,301,911,708.00

1,412,804,796.00

1,341,905,532.53

18,004,690.03 7,905,786.52 29,145,592.58
(91,365,770.46) (11,685,239.85) (2,467,393.95) (20,436,928.34) (70,899,263.47)

815,124,439.25
66,646,843.39 41,720,165.04 14,324,049.73 53,124,530.19 71,427,520.95 9,094,622.55 110,794,931.66 57,824,464.45 20,691,252.27
1,263,792.61 1,452,000.00
66,025,612.11
140,898.00 8,499.00
1,329,663,621.20 (27,751,913.20)

860,479,539.76
74,664,031.59 65,427,172.39 14,388,544.54 57,831,260.01 71,620,451.63
9,156,314.61 131,712,295.87 58,798,595.89 24,325,647.99
757,907.29 2,024,501.81
22,500.00 69,176,408.14
279,370.79 8,499.00
1,440,673,041.31 (27,868,245.31)

798,669,002.66
71,373,205.17 44,601,191.77 14,248,824.22 45,667,876.73 73,495,770.23 9,615,067.30 110,960,542.51 48,269,259.68 20,394,657.51
965,375.78 3,923,387.17
2,628.13 41,120,109.85
13,674.34 -
1,283,320,573.05 58,584,959.48

61,810,537.10
3,290,826.42 20,825,980.62
139,720.32 12,163,383.28 (1,875,318.60)
(458,752.69) 20,751,753.36 10,529,336.21 3,930,990.48
(207,468.49) (1,898,885.36)
19,871.87 28,056,298.29
265,696.45 8,499.00
157,352,468.26 86,453,204.79

3,974,674.00

3,974,674.00

-

(3,974,674.00)

(3,974,674.00)

-

-

(1,407,507.43)

-

-

(1,407,507.43)

-

(27,751,913.20)

(29,275,752.74)

58,584,959.48

114,966,497.60

104,495,686.24

131,827,079.01

$

87,214,584.40 $

75,219,933.50 $

190,412,038.49 $

(3,974,674.00) 3,974,674.00 1,407,507.43 1,407,507.43
87,860,712.22
27,331,392.77
115,192,104.99

Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
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.

- 48 -

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2021

SCHEDULE "10"

AGENCY/FUNDING GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program 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 School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment QBE Contra Account Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Other State Programs Charter Schools - Facilities Food Services GNETS State Grant Hygiene Products Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Residential Treatment Centers Grant Rule 10 Special Education State Grant School Security Grant Teachers Retirement Tuition for Multi-Handicapped Children Vocational Education Georgia State Financing and Investment Commission Reimbursement on Construction Projects Governor's Office of Student Achievement Connections for Classrooms Grant Office of the State Treasurer Public School Employees Retirement
See notes to the basic financial statements.

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

10,954,166.72 $

- $

10,954,166.72

18,389,473.00 21,983,502.00 64,741,590.00 47,519,093.00 31,481,916.00 26,476,699.00 73,311,542.00 65,429,204.00 17,288,175.00 91,272,997.00 37,856,161.00 6,846,455.00 5,203,306.00 38,746,184.00 13,519,049.00
3,914,310.00 2,500,993.00
42,062.00
11,291,375.00 26,994,135.00 28,270,961.00 19,752,138.00 (16,656,749.00) (138,780,234.00)

-

18,389,473.00

-

21,983,502.00

-

64,741,590.00

-

47,519,093.00

-

31,481,916.00

-

26,476,699.00

-

73,311,542.00

-

65,429,204.00

-

17,288,175.00

-

91,272,997.00

-

37,856,161.00

-

6,846,455.00

-

5,203,306.00

-

38,746,184.00

-

13,519,049.00

-

3,914,310.00

-

2,500,993.00

-

42,062.00

-

11,291,375.00

-

26,994,135.00

-

28,270,961.00

-

19,752,138.00

-

(16,656,749.00)

-

(138,780,234.00)

4,840,934.00 926,640.00
2,098,597.00

271,747.10 1,432,850.30 2,579,396.41
29,497.04 775,808.00 1,719,727.99 308,880.00 330,509.00 138,648.68 1,411,555.42 180,893.57
83,244.92 900,913.83

-

149,383.55

1,906,598.00

$

528,434,328.53 $

-
-
7,828,660.34
-
-
7,828,660.34 $

4,840,934.00 926,640.00
2,098,597.00
271,747.10 1,432,850.30 2,579,396.41
29,497.04 775,808.00 1,719,727.99 308,880.00 330,509.00 138,648.68 1,411,555.42 180,893.57
83,244.92 900,913.83
7,828,660.34
149,383.55
1,906,598.00
536,262,988.87

- 49 -

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2021

SCHEDULE "11"

PROJECT
2012 Sales Tax - Authorized Projects 1. Americans with Disabilities Act (ADA) Improvements 2. Stadiums 3. Capital Renewal Program 4. Code Requirements 5. Coralwood Diagnostic Center Addition 6. Early Learning Center 7. Arts School at former Avondale MS 8. Renovation of Southwest DeKalb HS & Stone Mountain HS 9. Replacement of Austin ES, Fernbank ES, Gresham Park ES, Pleasantdale ES, Peachcrest ES, Rockbridge ES, Smoke Rise ES 10. Henderson MS Renovation/Addition 11. Redan HS Renovation/Addition 12. Chamblee HS Replacement 13. McNair MS Replacement 14. Local School Priority Requests 15. Demolition 16. Safety/Security Systems Upgrade 17. Technology Equipment & Infrastructure Refresh 18. School Buses 19. Service Vehicles 20. Other Capital improvements and supporting services (includes Bond Series 2012 Bond Issuance Costs, Principal Payments and 2011 COPS Interest Payments)
2017 Sales Tax - Authorized Projects (1) Making of site, facility and technology improvements
deemed necessary to improve safety and security, such as enhancing surveillance systems, fire alarm systems, fire sprinkler installation, perimeter fencing, etc. at some or all of the DeKalb County School District (DCSD) schools and facilities; (2) Adding to, modifying, replacing, reconfiguring schools and/or creating new schools and/or facilities to accommodate current and future student enrollment, address major facility conditions, develop early childhood centers, enhance regional support of schools, and accomodate expanded new programmatic needs, and acquiring land for constructing and equipping new and/or replacement schools/facilities, or equivalent facility capacity, including, but not limited to, site preparation and the demolition of all or portions of existing structures and/or acquiring leasehold purchasing of facilities/properties as needed based on DCSD's determination of need priorities;

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

ESTIMATED COMPLETION
DATE

$

2,342,500.00 $

14,731,809.51

9,557,400.00

10,628,646.65

84,892,200.00

114,395,065.17

2,342,500.00

2,788,526.88

9,932,200.00

5,902,041.48

2,717,300.00

2,682,284.00

4,029,100.00

11,127,167.00

11,056,600.00

34,525,148.58

135,021,700.00 14,992,000.00 20,988,800.00 55,001,900.00 35,043,800.00
5,153,500.00 2,342,500.00 2,342,500.00 36,261,900.00 9,463,700.00 1,592,900.00

171,302,626.10 19,245,872.25 22,065,648.16 54,992,632.00 40,733,167.53 2,902,294.25
4,221,328.66 2,292,719.24 34,252,207.00 12,800,247.61 2,252,530.33

Completed Completed Aug 2021 Dec 2021 Completed Dec 2021 Dec 2021 Dec 2021
Aug 2021 Completed Completed Dec 2021 Completed Completed Completed Completed Dec 2021 Completed Completed

29,925,000.00 475,000,000.00

82,511,967.59 646,353,929.99

June 2022

12,872,000.00

43,967,991.00

Sept 2024

298,180,000.00

171,012,087.00

May 2023

- 50 -

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2021

SCHEDULE "11"

PROJECT
2017 Sales Tax - Authorized Projects (3) Adding to, renovating, modifying, reconfiguring, equipping,
upgrading, supplementing, acquiring, replacing, and installing capital improvements for various existing and new schools, buildings and facilities (including schools, buildings and facilities to be constructed pursuant to this resolution, once completed and including any site preparation and demolition of existing structures if necessary) e.g., roofing, plumbing, wiring, painting, water piping, HVAC, making athletic field and physical education facility upgrades and improvements, ADA renovations, infrastructure improvements, repaving, restroom facilities, systems for environmental and air quality control, physical education facilities, kitchens, improvements to comply with health, safety and applicable building codes, traffic control and optimization, parking and parking capacity, stormwater management facilities, and program-driven modifications, as needed based on the DCSD's determination of need priorities at some or all of the DCSD schools and facilities; (4) Making technology improvements, by acquiring, replacing, purchasing, installing, upgrading or supplementing technology including, but not limited to technology that supports and/or enhances instruction, digital communication technology, enhanced school security solutions, wireless technology, enterprise content management solutions, replacement and/or enhancement of technology/systems in support of an Enterprise Resource Planning (ERP) upgrade, data storage systems, telecommunication systems, digital records retention, technology hardware, software, and related infrastructure at some or all of the DCSD schools and facilities, as needed; (5) Replacing, purchasing, upgrading, refurbishing or supplementing school buses and support vehicles and other capital equipment as needed including, but not limited to items such as desks, chairs, tables, instructional equipment, band equipment, kitchen equipment, waste compactors, portable classroom/modular buildings, custodial equipment, grounds equipment, etc. at some or all DCSD schools and facilities; (6) And the expenses incidental to accomplishing the DeKalb projects including, but not limited to, implementation expenses, management expenses, and legal expenses.

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

ESTIMATED COMPLETION
DATE

96,948,000.00

157,032,051.00

May 2023

65,000,000.00

66,500,000.00

Jan 2023

40,000,000.00

40,075,000.00

48,000,000.00 561,000,000.00

222,412,871.00 701,000,000.00

$ 1,036,000,000.00 $ 1,347,353,929.99

Aug 2022 Sept 2024

- 51 -

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2021

SCHEDULE "11"

PROJECT

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED IN PRIOR YEARS (3)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

2012 Sales Tax - Authorized Projects

1. Americans with Disabilities Act (ADA) Improvements

$

1,124,690.95 $

13,607,118.56 $

14,731,809.51 $

-

2. Stadiums

95,648.00

10,532,998.65

10,628,646.65

-

3. Capital Renewal Program

405,837.15

91,179,553.01

-

-

4. Code Requirements

-

2,677,726.34

-

-

5. Coralwood Diagnostic Center Addition

4,461,593.08

1,440,448.40

5,902,041.48

-

6. Early Learning Center

-

2,187,864.10

-

-

7. Arts School at former Avondale MS

-

310,896.41

-

-

8. Renovation of Southwest DeKalb HS & Stone Mountain HS

324,831.68

33,833,534.01

-

-

9. Replacement of Austin ES, Fernbank ES, Gresham Park ES,

Pleasantdale ES, Peachcrest ES, Rockbridge ES, Smoke Rise ES

13,290,028.38

155,390,728.03

-

-

10. Henderson MS Renovation/Addition

-

19,245,872.25

19,245,872.25

-

11. Redan HS Renovation/Addition

-

22,065,648.16

22,065,648.16

-

12. Chamblee HS Replacement

8,369,927.34

40,369,384.79

-

-

13. McNair MS Replacement

49,230.12

40,683,937.41

40,733,167.53

-

14. Local School Priority Requests

-

2,902,294.25

2,902,294.25

-

15. Demolition

-

4,221,328.66

4,221,328.66

-

16. Safety/Security Systems Upgrade

-

2,292,719.24

2,292,719.24

-

17. Technology Equipment & Infrastructure Refresh

219,105.45

33,058,251.88

-

-

18. School Buses

-

12,800,247.61

12,800,247.61

-

19. Service Vehicles

-

2,252,530.33

2,252,530.33

-

20. Other Capital improvements and supporting services

(includes Bond Series 2012 Bond Issuance Costs, Principal

Payments and 2011 COPS Interest Payments)

37,939.00

76,952,557.62

-

-

28,378,831.15

568,005,639.71

137,776,305.67

-

2017 Sales Tax - Authorized Projects

(1) Making of site, facility and technology improvements

deemed necessary to improve safety and security, such as

enhancing surveillance systems, fire alarm systems, fire

sprinkler installation, perimeter fencing, etc. at some or all

of the DeKalb County School District (DCSD) schools and

facilities;

1,017,151.88

52,145.06

-

-

(2) Adding to, modifying, replacing, reconfiguring schools

and/or creating new schools and/or facilities to

accommodate current and future student enrollment,

address major facility conditions, develop early childhood

centers, enhance regional support of schools, and

accomodate expanded new programmatic needs, and

acquiring land for constructing and equipping new and/or

replacement schools/facilities, or equivalent facility capacity,

including, but not limited to, site preparation and the

demolition of all or portions of existing structures and/or

acquiring leasehold purchasing of facilities/properties as

needed based on DCSD's determination of need priorities;

25,791,183.74

81,660,275.13

-

-

See notes to the basic financial statements.

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DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2021

SCHEDULE "11"

PROJECT

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED IN PRIOR YEARS (3)

TOTAL COMPLETION
COST

EXCESS PROCEEDS NOT
EXPENDED

2017 Sales Tax - Authorized Projects

(3) Adding to, renovating, modifying, reconfiguring, equipping,

upgrading, supplementing, acquiring, replacing, and

installing capital improvements for various existing and new

schools, buildings and facilities (including schools, buildings

and facilities to be constructed pursuant to this resolution,

once completed and including any site preparation and

demolition of existing structures if necessary) e.g., roofing,

plumbing, wiring, painting, water piping, HVAC, making

athletic field and physical education facility upgrades and

improvements, ADA renovations, infrastructure improvements,

repaving, restroom facilities, systems for environmental and

air quality control, physical education facilities, kitchens,

improvements to comply with health, safety and applicable

building codes, traffic control and optimization, parking and

parking capacity, stormwater management facilities, and

program-driven modifications, as needed based on the

DCSD's determination of need priorities at some or all of the

DCSD schools and facilities;

7,756,511.63

4,686,982.33

-

-

(4) Making technology improvements, by acquiring, replacing,

purchasing, installing, upgrading or supplementing technology

including, but not limited to technology that supports and/or

enhances instruction, digital communication technology,

enhanced school security solutions, wireless technology,

enterprise content management solutions, replacement and/or

enhancement of technology/systems in support of an

Enterprise Resource Planning (ERP) upgrade, data storage

systems, telecommunication systems, digital records retention,

technology hardware, software, and related infrastructure at

some or all of the DCSD schools and facilities, as needed;

3,337,588.74

54,595,938.99

-

-

(5) Replacing, purchasing, upgrading, refurbishing or

supplementing school buses and support vehicles and other

capital equipment as needed including, but not limited to

items such as desks, chairs, tables, instructional equipment,

band equipment, kitchen equipment, waste compactors,

portable classroom/modular buildings, custodial equipment,

grounds equipment, etc. at some or all DCSD schools and

facilities;

2,197,253.76

29,015,729.51

-

-

(6) And the expenses incidental to accomplishing the DeKalb

projects including, but not limited to, implementation

expenses, management expenses, and legal expenses.

4,860,795.91

20,728,042.77

-

-

44,960,485.66

190,739,113.79

-

-

$ 73,339,316.81 $ 758,744,753.50 $ 137,776,305.67 $

-

(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.

- 53 -