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DeKalb Schools to Repay State $1.21 Million for Unpaid Employee Benefits
The DeKalb County School District has agreed to repay the state $1.21 million for unpaid employee benefits, the third recent settlement over past financial errors. District officials blame a state computer system transition for the discrepancy.
The DeKalb County School District has agreed to pay the state $1.21 million to settle unpaid employee benefits, according to a settlement agreement signed Oct. 26 with the Georgia Department of Administrative Services (DOAS). The payment covers benefit variances from 2021 through 2023, though the district acknowledged that related discrepancies date back to 2019.
The district contracts with DOAS to provide ancillary benefits such as dental, vision, life insurance, and other optional coverage to employees. In a statement, the district said the problem stemmed from the state's transition to a new computer system. "The district's payment process relied on employee payroll deductions, which inadvertently resulted in payments that did not always match the full insurance premiums billed by DOAS," the statement read. "The system transition and transaction process at the time limited DCSD's ability to routinely reconcile these amounts."
Because the issues occurred more than three years ago, current employees will not be affected. "DCSD remains committed to maintaining employee trust, honoring its financial responsibilities, and ensuring the responsible stewardship of public resources while continuing to support the needs of our students and employees," the district said. The district has since implemented additional financial controls to identify discrepancies, it said.
A DOAS spokesperson said the department has worked with the Clayton County School District to resolve similar issues in the past, suggesting such agreements are not unprecedented.
The settlement is the third recent agreement to resolve past financial problems for DeKalb, one of Georgia's largest school systems. Earlier this year, the district agreed to pay $12 million to Atlanta Public Schools and City Schools of Decatur after collecting more than its fair share of sales tax revenue over several years. DeKalb said the mix-up occurred because someone failed to submit updated paperwork to the state. Superintendent Norman Sauce said over the summer that leadership turnover in the affected districts likely contributed to the issue.
The district also recently agreed to pay $29.5 million to seven charter schools after allegedly withholding funding, ending a yearslong legal saga. In total, the district has paid more than $40 million this year to settle past financial problems.
The repeated settlements raise questions about financial oversight and internal controls within the district, which serves tens of thousands of students in metro Atlanta. The district's commitment to new financial controls will be tested as it works to restore trust with employees, state agencies, and the community.