The DeKalb County School District has been formally designated "High Risk" by the Georgia Department of Audits and Accounts, the district announced Tuesday, Aug. 11, adding a new layer of state oversight to a system that serves Dunwoody High, Chamblee Charter High and dozens of other local schools.

The label stems from a repeat federal audit finding in the School Food Nutrition program's payroll controls. Auditors first flagged the issue in the 2022–23 school year, then again in fiscal year 2024 and fiscal year 2025. Three consecutive years of the same finding triggered the designation under Georgia law.

The dollar amounts are small relative to the program's size. The FY2025 audit identified $7,474 in actual questioned costs and roughly $93,759 in projected questioned costs within a payroll budget exceeding $20.6 million. That's about 0.036% of the program's personnel spending.

Still, the "High Risk" tag carries real consequences under two new state laws, House Bill 1164 and Senate Bill 472, that took effect July 1. Together, the laws create a tiered monitoring system for school district finances and expand the State Board of Education's authority over flagged districts. Under Senate Bill 472, a high-risk designation limits the superintendent's contract to one year and can void longer existing contracts. The law also allows the State Board of Education to recommend that the governor suspend local school board members when the state auditor flags a district at the highest monitoring level.

Whether the contract-cap provision applies to interim Superintendent Dr. Norman C. Sauce III's specific agreement is unclear. The district's statement did not address it.

"We take our responsibility to safeguard taxpayer and federal resources seriously," Sauce said in the Aug. 11 statement. "We are focused on strengthening our systems and internal controls and ensuring the highest standards of financial accountability."

The district said it has already implemented a corrective action plan approved by the Georgia Department of Education. The plan includes strengthened payroll review, account-coding, pay-scale and time-tracking controls in the nutrition program.

DCSD emphasized that its FY2025 financial statements received an unmodified "clean" audit opinion with no material weaknesses, significant deficiencies or material noncompliance affecting financial reporting. The state auditor also found the district remains financially stable overall.

The designation is separate from the $12 million ESPLOST VI tax error that prompted DCSD to pause bus purchases and fire alarm upgrades earlier this summer. That issue involved a missed certificate of distribution in 2022 that skewed payments to Decatur and Atlanta Public Schools. The audit finding behind the high-risk label is a federal compliance matter in the food-service payroll program.

The district did not provide a specific timeline for resolving the underlying finding. Residents with questions can contact the DeKalb County Board of Education, which holds regular public meetings and accepts public comment.