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Annual Financial and Compliance Report

Each year, a Charter School, Independent School District (ISD) or education service center (ESC) must take the following steps:

  1. Prepare its annual financial statements.
  2. Have its annual financial statements audited by a licensed independent certified public accountancy (CPA) firm.
  3. Submit the resulting audited annual financial and compliance report (AFR) and additional data to the ÁñÁ«ÊÓÆÁ (ÁñÁ«ÊÓÆÁ) for review.

When is the AFR due to ÁñÁ«ÊÓÆÁ? 

 

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 onthen the AFR is due to ÁñÁ«ÊÓÆÁ on or before
August 31,January 28.
June 30,November 27.
  • The , does not provide for any extension when the date falls on a holiday or weekend. The AFR is also not required to be submitted earlier.
  • A complete, board approved, and signed AFR in PDF and data feed text file must be received through the AUDIT application in the ÁñÁ«ÊÓÆÁ Login (ÁñÁ«ÊÓÆÁL) secure environment to meet submission requirements.
  • Emailing of the required AFR files does not meet submission requirements.
  • The AUDIT application in ÁñÁ«ÊÓÆÁL is open 24 hours a day, seven days a week to accept electronic AFR submissions.

*Change to ÁñÁ«ÊÓÆÁ FY2025 Annual Financial Report Submission Due Date*

Due to the delayed release of the final 2025 Office of Management and Budget (OMB) Compliance Supplement on November 25, 2025, and the development of the new Audit 2.0 application in ÁñÁ«ÊÓÆÁL, the FY2025 annual financial report (AFR) due date for all FY2025 annual financial reports to be completed, approved by the board, and submitted to the ÁñÁ«ÊÓÆÁ is February 27, 2026. This applies to charter schools, education service centers (ESCs) and independent school districts for the FY2025 AFR.

If a Single Audit was required, the Board will need to review and approve the final Annual Comprehensive Financial Report (ACFR). This ACFR must be dated after the final 2025 Compliance Supplement was released on November 25, 2025. 

Alternatively, if a Generally Accepted Government Auditing Standards (GAGAS), Yellow Book final audit of the financial statements was previously approved by board and a Certificate of Board (COB) was signed and dated, then:

  • a separate COB, dated after November 25, 2025, may be completed for the Single Audit, and both COBs can be included in the ACFR electronically submitted to ÁñÁ«ÊÓÆÁ.
  • Board meeting minutes approving the Single Audit may be submitted in place of a second COB, provided the Board has already met and approved the Single Audit.

If the Board approved the Single Audit before November 25 and no additional Board meetings are scheduled, the district’s CPA firm may provide a certification confirming that additional procedures were performed to ensure the Single Audit aligns with the finalized Compliance Supplement released on November 25. This certification must include reference to the original Board minutes where the Single Audit was approved. Both the Board minutes and the CPA firm’s certification must be electronically submitted to ÁñÁ«ÊÓÆÁ through ÁñÁ«ÊÓÆÁL.

Please Note:

The TSDS PEIMS Mid-Year Submission due dates will remain as published in the Texas Education Data Standards: 

  • PEIMS Mid-Year First Submission Due Date: January 22, 2026
  • PEIMS Mid-Year Resubmission Due Date: February 12, 2026

Even if the audit is not yet complete, districts should still submit their mid-year PEIMS data by the January 22 deadline using the best available financial information. You may request from your auditor audited adjustments if available and make any necessary corrections during the resubmission window on February 12.

Audit 2.0 Application in ÁñÁ«ÊÓÆÁL

Users can now apply for access to the new Audit 2.0 application. After you are approved, the Audit 2.0 application will not be visible on your ÁñÁ«ÊÓÆÁL home page until it is open in production for users. Before it moves to production, Audit 2.0 will only appear under the users My Application Accounts on the Self-Service menu. 

ÁñÁ«ÊÓÆÁ anticipates the new Audit 2.0 application will open on January 29, 2026, for all users and their submissions. Please refer to the Electronic Submissions web page for additional information.

Please refer to the January 15, 2026, To the Administrator Addressed Correspondence titled, FY2025 Annual Financial Report Submission and Audit Application Transition.

Preparation of the Annual Financial Report submission 

The AFR electronic submission summary:

  1. Prepare 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:
    • Certificate of Board
      • Indicated to be approved or disapproved
      • Complete date: month, date, and year
      • Signed by board president and secretary (or other board member in place of)
    • Signed and dated auditor's reports
    • Federal single audit report (required when $750,000 or more in federal expenditures)
    • Management letter (if issued)
    • Schedule L-1, Required Responses to Selected School FIRST Indicators (ISDs only, Charter Schools submit schedule RQ1 in data feed only)
  5. Prepare data feed text file submission.
  6. Ensure that the financial information in the AFR and data feed are consistent.
  7. Submit Both the PDF and data feed through the AUDIT application in the ÁñÁ«ÊÓÆÁ Login (ÁñÁ«ÊÓÆÁL)
  8. Review the PDF and data feed submission for consistency and completeness.
  9. Finalize the data feed text file.
  10. Use the VIEW District Status menu option in the AUDIT application to open and view each PDF file for completeness, and verify that the data feed is submitted and finalized. 

For instructions on submitting the AFR and data feed to ÁñÁ«ÊÓÆÁ, see Electronic Submissions.

Common Issues with Annual Financial Report submissions

The following presentation(s) summarize the common issues identified during reviews of the annual financial report PDF and data feed file submissions. The third presentation provides information on updates to two ISD data feed schedules for FY2023 submissions.

Listing of External Audit Firms

We have provided a listing of independent audit firms that have performed audits of charter schools and school districts in Texas for the most recent audit year. The firms are listed by the name under which the audit was performed and the number of audits performed in each ESC region. Please refer to the Texas State Board of Public Accountancy website at  for contact information, name changes, and the license status of each firm.

Please note that this posting is not an endorsement of any of the firms listed.  

Charter schools, ESCs, and school districts in Texas must ensure their independent auditor:

  • is a CPA firm that has a current valid license issued by the Texas State Board of Public Accountancy;
  • is a CPA with a current valid license issued by the Texas State Board of Public Accountancy;
  • is a member of the AICPA Governmental Audit Quality Center (GAQC) (); and
  • meets all additional rules of the , , and all other requirements.

Out-of-State CPA Firms Unlicensed in Texas

An out-of state CPA firm unlicensed in Texas can perform a Texas school audit; however, the auditor signing off on the audit is required to be a Texas licensed CPA per the Texas Education Code Â§44.008(a) and Texas Administrative Code Â§109.23(d)(1)(B).

The following spreadsheet contains a listing of external certified public accounting firms that performed audits of charter schools, governmental charter schools, and school districts:

Electronic AFR Public Viewer 

To view a prior AFR, search the .

Statutes and Rules Related to the AFR 

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Contact Information

Paul Moreno (512) 475-2228 or paul.moreno@tea.texas.gov

Division of Financial Compliance

Phone: (512) 463-9095

Fax: (512) 463-1777

Email: schoolaudits@tea.texas.gov