Annual Financial Audit Reporting Reminder

Word Version

October 15, 2014

TO THE ADMINISTRATOR ADDRESSED:

Subject: Annual Financial Audit Reporting Reminder

The Texas Education Agency (TEA) requires that local educational agencies (LEA)—independent school districts (ISDs) and open-enrollment charter schools—and regional education service centers (ESCs) submit their annual financial and compliance reports (AFRs) in electronic format (see the September 24, 2012, TO THE ADMINISTRATOR ADDRESSED letter, Changes to the Annual Financial and Compliance Report Submission Requirements http://tea.texas.gov/Finance_and_Grants/Financial_Compliance/Electronic_Submissions/

The electronic-format submission consists of two parts. The first part is submitting a data feed text file for ISDs and ESCs or a data template for charter schools to the TEA Division of Financial Accountability. The second part is submitting the AFR as a portable document format (PDF) document. Additional electronic submission information can be found on the TEA Division of Financial Compliance’s Electronic Submissions web page (http://www.tea.state.tx.us/index4.aspx?id=3968).

In addition, please ensure that the AFR in PDF includes the complete approved or disapproved, dated, and signed certificate of board; the auditor management letter (if applicable); and the Schedule L-1, Required Responses to Selected School First Indicators (which only applies to ISDs and can be submitted as a separate PDF).

ISDs and ESCs
Each ISD or ESC must ensure that its data feed is consistent with the financial information in its AFR. Each schedule contains edits that each ISD or ESC will need to review. After reviewing and correcting (if necessary) all edits for each schedule, the ISD or ESC must submit and close the data feed file as part of the AFR submission.

Charter Schools
Beginning with the submission of the 2014 fiscal year AFR, all charter schools must submit a Charter School Annual Financial Report Data Template to the TEA Division of Financial Accountability. The template, instructions, and contact information can be found on the TEA website. The template is part of the AFR package that a charter school must submit by the 150th day after the end of its fiscal year. Failure to submit the template could lead to a failure of the Charter FIRST Rating. The charter school must ensure that its data template is consistent with the financial information in its AFR. Each schedule has validation tests to check for variances, and explanations of variances will need to be entered.

In conclusion, the completed, signed, and board-approved or disapproved AFR; consisting of both the PDF documents and either the finalized data feed text files for ISDs and ESCs or a data template for charter schools, is due no later than 150 days after the close of the LEA’s or ESC’s respective fiscal year, either November 27 or January 28.

Sincerely,

David Marx
Director, Division of Financial Compliance