CF(LEGAL) - ACCOUNTING

Data Reporting

Each ESC shall report audited financial and performance information and any other information requested by the Commissioner for use in assessing the performance of the ESC. The Commissioner shall develop a uniform system for ESCs to report audited financial data. [See AE and BR] Education Code 8.102

The Commissioner's annual evaluation of each ESC must include an audit of the ESC's finances, performance, and client satisfaction. Education Code 8.103

Accounting Rules

A uniform system of public school budgeting, accounting, and financial reporting shall be provided and employed throughout the state as required by law. The uniform system for budgeting, accounting, and financial reporting is to reflect the full implementation of modified and full accrual accounting, as appropriate, in accordance with generally accepted accounting principles. TEA's official rules for financial accounting are described in the Texas Education Agency publication, Financial Accountability System Resource Guide. 19 TAC 109.1(a), 109.41

Audits

The performance and review of required ESC independent audits by TEA, including review of auditors' working papers, shall be accomplished in accordance with TEA's Financial Accountability System Resource Guide. 19 TAC 109.23 [See AA]

Education Service Center, Region 2

CF(LEGAL)-ESCA

UPDATE 9

DATE ISSUED: 3/28/2005