Changes to the Annual Financial and Compliance Report Submission Requirements

Word Version

September 24, 2012

TO THE ADMINISTRATOR ADDRESSED:

SUBJECT:     Changes to the Annual Financial and Compliance Report Submission Requirements

This letter is to notify local educational agencies (LEAs)—school districts and open-enrollment charter schools—and regional education service centers (ESCs) of upcoming changes to reporting requirements and to provide guidance regarding those changes.

The Financial Accountability System Resource Guide (FASRG) currently requires all LEAs and ESCs to submit their annual financial and compliance reports to the Texas Education Agency (TEA) in both paper and electronic format (see Module 7, Section 7.3.6.1). TEA will amend the FASRG in the future to require that LEAs and ESCs submit their annual financial and compliance reports in electronic format only. In the meantime, and effective from the date of this letter, TEA will require that LEAs submit their annual financial and compliance reports in electronic format only, rather than in both electronic and paper formats.

Electronic Submission Requirements

The electronic format submission consists of two parts. The first is the GASB audit data feed (not applicable to charter schools). Instructions for submitting this part are given in the Annual Financial Audit GASB Data Feed Standards. The second part is the annual financial and compliance report, which is submitted as a pdf document. Instructions for submitting this part are given in the Electronic Report Submission Standards. Instructions for both parts are published on the Financial Audits Electronic Submissions web page.

New Signature Requirement

After review, all submitted reports are published on the web by TEA. Some LEAs and ESCs prefer that the required original signature of the report approver not be published on the web. To address this security concern, TEA has implemented a new procedure effective from the date of this letter. LEAs and ESCs can choose to submit their reports with the approver’s printed name in place of the required signature. LEAs and ESCs that choose to do this must then submit a duplicate of the complete report with original signatures. This duplicate report will not be published on the web.

Details about this new procedure are given in the Electronic Report Submission Standards described above. LEAs and ESCs should carefully follow the instructions, including the specified file naming conventions, to avoid errors in their submissions.

Approval Requirements

The annual financial and compliance report will be considered submitted only when a complete pdf of the report, with original signatures, is received by TEA in the AUDIT application of the Texas Education Agency Secure Environment (TEASE).

Contact Information

For additional information about these changes, please contact Paul Moreno or Dana Flores in the Division of Financial Audits at (512) 463-9095.

Sincerely,

David McLaughlin, Interim Director

Division of Financial Audits