Annual Financial and Compliance Report

Each year, a Charter School, Independent School District (ISD) or education service center (ESC) must take the following steps:

  1. Prepare its annual financial statements.
  2. Have its annual financial statements audited by a licensed independent certified public accountancy (CPA) firm.
  3. Submit the resulting audited annual financial and compliance report (AFR)and additional data to the 鶹ý (鶹ý) for review.

When is the AFR due to 鶹ý?

An AFR is due by no later than 150 days after the close of a district’s fiscal year. The following table shows the due dates for different fiscal year calendars.

If a district’s fiscal year ends on then the AFR is due to 鶹ýon or before

August 31,

January 28.

June 30,

November 27.

      • The , does not provide for any extension when the date falls on a holiday or weekend. TheAFR is also not required to be submitted earlier.
      • A complete, board approved, and signed AFR in PDF and data feed text filemust bereceived throughthe AUDITapplication in the 鶹ý Login (鶹ýL) secure environment to meet submission requirements.
      • Emailing of the requiredAFR files does not meet submission requirements.
      • The AUDITapplication in 鶹ýLis open 24 hours a day, sevendays a weekto accept electronic AFR submissions.

      Preparation of the Annual Financial Report submission

      The AFR electronic submission summary:

      1. Prepare annual financial statements and have them audited by a licensed independent CPA firm.
      2. Have the audited AFR approved by its board.
      3. Prepare a PDF version of its board-approved, audited AFR.
      4. Ensure that the AFR PDF file includes:
        • Certificate of Board
          • Indicated to be approved or disapproved
          • Complete date: month, date, and year
          • Signed by board president and secretary (or other board member in place of)
        • Signed and dated auditor's reports
        • Federal single audit report (required when $750,000 or more in federal expenditures)
        • Management letter (if issued)
        • Schedule L-1, Required Responses to Selected School FIRST Indicators (ISDs only, Charter Schools submit scheduleRQ1 in data feed only)
      5. Prepare data feed text file submission.
      6. Ensure that the financial information in the AFR and data feed are consistent.
      7. Submit Both the PDF and data feed through the AUDITapplication in the 鶹ý Login (鶹ýL)
      8. Review the PDF and data feed submission for consistency andcompleteness.
      9. Finalize the data feed textfile.
      10. Use the VIEW District Status menu option in the AUDIT application to open and view each PDF file for completeness, and verify that the data feed is submitted and finalized.

        For instructions on submitting the AFR and data feed to 鶹ý, see Electronic Submissions.

        Common Issues with Annual Financial Report submissions

        The following presentation(s) summarize the common issues identified during reviews of the annual financial report PDF and data feed file submissions. The third presentation provides information on updates to two ISD data feed schedules for FY2023 submissions.

        Listing of External Audit Firms

        We have provided a listing of independent audit firms thathave performed audits of charter schools and school districts in Texas for the most recent audit year.The firms are listed by the name under which the audit was performed and the number of audits performed in each ESC region. Please refer to the Texas State Board of Public Accountancy website at for contact information, name changes, and the license status of eachfirm.

        Please note that this posting is not an endorsement of any of the firms listed.

        Charter schools, ESCs,and school districts in Texas must ensure their independent auditor:

        • is a CPAfirm that has a current valid license issued by the Texas State Board of Public Accountancy;
        • is a CPAwith a current valid license issued by the Texas State Board of Public Accountancy;
        • is a member of the AICPA Governmental Audit Quality Center (GAQC) (); and
        • meets all additional rules of the , , and all other requirements.

        The following spreadsheet contains a listing of external certified public accounting firmsthat performed audits of charter schools, governmental charter schools, and school districts:

        Electronic AFR Public Viewer

        To view a prior AFR, search the .

        Statutes and Rules Related to the AFR

        Contact Information

        Paul Moreno (512) 475-2228

        Division of Financial Compliance

        Phone: (512) 463-9095

        Fax: (512) 463-1777