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 Texas Education Agency (TEA) for review.

Audits are completed in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the  Comptroller General of the United States.

For more informatin about Financial Audits, visit the TEA website.