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
• Texas Education Code (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) §100.1007, relating to filing date
• 19 TAC §100.1043(b), relating to the requirement for a depository bank
• 19 TAC §100.1013, relating to filing of documents
• Financial Accountability System Resource Guide, Module 2: Special Supplement—Charter Schools (PDF, 1,319KB)

Procedure for Depository Contract—Charter Holder Annual Submission Due December 1

By December 1 of each year, the charter holder must either:

• complete and submit a  or
  •  Depository Contract for Funds of Open-Enrollment Charter Schools (PDF, 401KB) to the TEA Financial Compliance Division and a
  •  Direct Deposit Authorization Form (PDF, 743 KB)

or

• file 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.

• Depository Contract for Funds of Open-Enrollment Charter Schools (PDF, 401 KB)
• Summary of Laws and Procedures Pertaining to Depository Contracts for the Funds of Open-Enrollment Charter Schools (PDF, 26KB)

Account Information Update 

If direct deposit account information changes, a new vendor direct deposit authorization form 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.