Annual Audit Requirements

The State of Texas requires independent financial audits to be performed annually for charter schools. All Charter Audits must comply with Module 10 of the Financial Accountability System Resource Guide (FASRG) standards and have the statements audited by a qualified, licensed independent CPA firm. Be sure to hire an experienced Charter Auditor, and it is best practice to verify your audit meets the FASRG requirements. For our CSS clients, we follow up to:

  • Ensure an auditor is selected and scheduled, preferably before the winter break.
  • Verify that the selected auditor is a qualified and licensed independent auditor.
  • Each year charter school must take the following three steps:
    • Prepare Annual financial statements.
    • Have its annual financial statements audited by a licensed independent Certified Public Accountancy (CPA) firm.
    • Submit the resulting audit Annual Financial and compliance Report (AFR) and additional data to the Texas Education Agency (TEA) for review.