Depository Contracts for Charter Schools

A charter holder must have a depository bank into which the Texas Education Agency (TEA) deposits funds for the charter holder. The charter holder creates a depository relationship with a bank by executing a depository contract with the bank. 

Related Texas Rules and Statutes

• Texas Education Code (TEC) §12.107(4), relating to deposit of state funds by charter holder
• TEC, §45.201(2), including the definition of “bank” as related to school districts and referenced in the depository contract for charter holders
• 19 Texas Administrative Code (TAC) §100.1003, relating to filing of electronic documents
• 19 TAC §100.1063, relating to requirement of a depository bank, contract and filing date
• 19 TAC §100.1111, relating to filing date
• Financial Accountability System Resource Guide, Module 2: Special Supplement—Charter Schools (PDF, 1,319KB)

Procedure for Required Annual Submission of Depository Contract Information by Charter Holder

The Charter Holder Depository Contract information must be submitted every year in alignment with the Governance Reporting due date as listed at the bottom of the Charter School Governance web page. For the current reporting cycle, the submission window opens on October 6, 2025 and closes on December 8, 2025. All required depository contract information is required to be submitted within this designated timeframe.

 The charter holder has two options to fulfill this requirement. Complete and submit to the TEA Financial Compliance Division through TEAL:

• Option1:
  • a signed Depository Contract for Funds of Open-Enrollment Charter Schools (PDF, 401KB) and
  • a signed Direct Deposit Authorization Form (PDF, 743 KB).

or

• Option 2: a signed statement that there have been no changes to the accepted depository contract currently on file with TEA.

The contract and direct deposit form or the statement must be submitted electronically through the Texas Education Agency Login (TEAL) Audit application. See Electronic Submission of Depository Contract Files at the bottom of this page.

Review the instructions below before submission because the depository contract and the direct deposit form will not be accepted if the forms are incomplete or incorrect.

Account Information Update 

If direct deposit account information changes at the same bank, only a new Direct Deposit Authorization Form must be submitted to the TEA per TEC§100.1063. If there is a change of bank, all documents in Option 1, above, must be submitted.

• Direct Deposit Authorization Form with instructions (PDF, 743 KB)

Electronic Submission of Depository Contract Files

Please review the Depository Contracts Electronic Submission Process for instructions on submitting depository contract files to TEA.