Annual Financial and Compliance Report

Each year, a school district, charter school, or regional education service center (ESC) must:

  1. Prepare its annual financial statements,
  2. Have its annual financial statements audited by a licensed independent CPA firm, and
  3. Submit the resulting audited annual financial and compliance report (AFR), and additional data to the Texas Education Agency (TEA) for review.

When is the AFR due to the TEA? 

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 us on or before:

August 31

January 28

June 30

November 27

Independent School Districts and ESCs 

This section provides procedures for districts and ESCs to prepare and submit an AFR.

How does a district or an ESC prepare its AFR? 

The district or ESC must complete the following steps:

  1. Prepare its 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 the:
    • signed certificate of board approval and audit firm signatures,
    • (if issued) management letter, which may be submitted as a separate PDF file, and
    • (applies to districts only) Schedule L-1, Required Responses to Selected School FIRST Indicators, which may be submitted as a separate PDF file.
  1. Prepare its data feed text file.
  2. Ensure that the financial information in its AFR and data feed are consistent.
  3. Submit the following documents through the AUDIT and Indirect Costs application in the TEA Secure Environment (TEASE):
    • board-approved AFR PDF file
    • Schedule L-1 PDF file (if separate from the AFR)
    • management letter (if issued) and
    • data feed text file.

How does a district or an ESC send its AFR to the TEA? 

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

Charter Schools

This section provides procedures for charter schools to prepare and submit an AFR.

How does a charter school prepare its AFR? 

The charter school must complete the following steps:

  1. Prepare its 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 the:
    • signed certificate of board approval and audit firm signatures,
    • (if issued) management letter, which may be submitted as a separate PDF file.
  1. Submit the board-approved AFR PDF file through the AUDIT and Indirect Costs application in the TEA Secure Environment (TEASE).
  2. Complete the Charter School Data Template by entering data from its AFR into the template; for more information on completing and submitting the data template, see the following website: School FIRST Rating for Charter Schools

How does a charter school send its AFR to the TEA? 

For instructions on sending a charter school AFR to the TEA, see Electronic Submissions

To the Administrator Addressed Correspondence 

The following documents present further detailed information about completing and submitting the AFR:

Electronic AFR Public Viewer 

To view a prior AFR, search the Database of Prior Annual Financial and Compliance Reports.

Statutes and Rules Related to the AFR