DeKalb schools owed state $1.2 million in unpaid employee benefits
The DeKalb County School District agreed to pay the state more than $1 million for unpaid employee benefits, according to a settlement agreement obtained by The Atlanta Journal-Constitution.
It’s the third recent agreement to settle a past financial snafu in one of the Georgia’s largest school systems.
DeKalb contracts with the Department of Administrative Services to provide ancillary benefits, including dental, vision, life insurance and other optional coverage, the district said in a statement.
Though the payment variances date back to 2019, the settlement requires the district to repay what it owed for 2021-2023, which was $1.21 million.
The district said the problem came when the state transitioned 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 district’s statement read. “The system transition and transaction process at the time limited DCSD’s ability to routinely reconcile these amounts.”
District leaders signed the settlement agreement with DOAS on Oct. 26. Because the issues occurred more than three years ago, there will be no impact on current employees.
“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 more financial controls to identify discrepancies, it said.
When asked whether this type of agreement is unusual, a spokesperson for DOAS said the department has collaborated with the Clayton County School District to resolve similar issues in the past.
Earlier this year, the DeKalb County School District agreed to pay $12 million to Atlanta Public Schools and City Schools of Decatur, after the district collected more than its fair share of sales tax revenue over several years. The mix-up, DeKalb said, happened because someone didn’t submit updated paperwork to the state. DeKalb County 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.