Audit Update: Submitting Your Annual Financial Report
It’s Audit Time! In Today’s Tip, we’ll be discussing the steps you need to take to submit/upload your Annual Audit — also referred to as the Annual Financial Report (AFR).
At CSS, we help review and assist in the completion and submission of the audit for our Charter School Success clients. On-time audits are required to Pass FIRST, which is one of the prime reasons CSS takes this part of our services very seriously!
Ready to get started? Read below!
What does TEA do with your AUDIT/ Annual Financial Report (AFR)?
TEA uses many numbers from your annual financial audit/ annual financial report. Using the Charter Data Template, TEA calculates your Charter’s Charter FIRST rating and other financial indicators.
What needs to be submitted to TEA?
- A PDF version of the audit via the Audit and Indirect Cost application in the TEA Secure Environment (TEASE) that includes the following: the signed certificate of board approval, audit firm signature on both the overall opinion as well as the Government Audit Standards opinion over internal controls & compliance, and contains all the required supplemental schedules.
- The TEA Excel spreadsheet “Charter AFR Template” via email to Financialaccountability@TEA.Texas.gov.
A best practice and something CSS does for our clients is thoroughly review both the pdf document and the excel spreadsheet to ensure the numbers match the accounting information system (“AIS”) before submission, as errors could impact your fiscal ratings!
When do I have to have it completed?
It is required that both documents are to be submitted to TEA by the 150th day after the end of the fiscal year. For June 30th fiscal year ends, the deadline is November 27, 20XX, and for August 31, 20XX year ends, the deadline is January 28, 20XX. For our Charter School Success clients, we help to submit both the PDF AFR to TEA and prepare and email the Charter Data Template by the required due dates.
NOTE: It is the Charter’s responsibility and not the auditor’s responsibility to ensure the audit is submitted by the due date. For our CSS clients, we will send the client proof of submission for them to keep in their records.
Where do I get the information required to complete the Charter Data Template report?
Your financial audit has all the information you need to complete the template and submit it to TEA.
Where do I get the Charter Data template and Instructions?
The excel or “live” template has built-in, automatic checks for accuracy. It is located on TEA’s website here: https://tea.texas.gov/finance-and-grants/financial-accountability/financial-integrity-rating-system-of-texas-first/school-first-rating-for-open-enrollment-charter-schools-and-charter-schools-operated-by-a-public-institution-of-higher-education-ihe. The template and instructions to complete the template from TEA are on the website under the heading Charter School Annual Financial and Compliance (AFR) Data Template.
Failure to submit the AFR or the template could lead to a failing Charter FIRST rating. Charter schools must ensure that the financial information in their data templates is consistent with the financial information in their AFRs. Each schedule has validation tests to check for variances, and charter schools must enter explanations for all variances.
Need help in preparing for the final audit submission?
Register for the Charter School Success Audit Preparation Online Course now!
Need more information?
Visit the Charter School Community Roundtable to ask questions and get answers!