Risk Level Assessment for 2026-27
PERSONNEL MANAGEMENT
11/2/2026
Low is usually good when you step on the scale, but you know what else you want to be low? Your risk level with TEA! Federal regulations require TEA to annually evaluate each grant recipient’s risk of noncompliance with the federal statutes, rules, terms, and conditions of their award. To comply with this requirement, TEA conducts a risk assessment of each recipient, including charter schools, and assigns each entity a fiscal risk rating level of low, medium, or high.
On October 31, 2026, the TEA Department of Grant Compliance and Administration released the 2026-27 risk assessment designations. How did you do? Read on to locate your report and learn about the point system TEA uses to determine risk ratings.
At inSchools, we work closely with our partner schools to ensure the most favorable rating is awarded, and that is just the beginning! We do this by providing you with a series of 1-on-1 meetings, webinars, and ongoing guidance and expert support as you navigate the world of federal grant management.
How Does My Charter’s Fiscal Risk Designation Affect Us?
The implications that come with each rating do not have to do with whether or not your charter is actually in compliance or not, but rather with the level of stringency your charter should expect in the application and negotiation processes for receiving federal grants and in determining the likeliness of your charter to be selected for closer fiscal monitoring.
An organization’s risk level will be used by TEA in the following ways:
Differentiated Grant Negotiation: TEA uses a differentiated grant negotiation process for federal grant applications. Organizations with a medium or high risk level are subject to a more stringent grant negotiation review than those with a low risk level.
Subrecipient Monitoring: Each year, TEA selects subrecipients for fiscal monitoring according to their risk levels. The higher your organization’s risk level, the more likely you are to be selected for monitoring; however, TEA monitors subrecipients from each risk level.
For High Risk designations: TEA will require more documentation such as general ledgers, payroll journals, and other documentation before approving draw down reimbursement payments.
How Are Fiscal Risk Rating Levels Determined?
The system was revamped in 2023-24 to allow for a more evenly distributed point system. For the school year 2025-26, there were 25 indicators and for the 2026-27 ratings, the number of indicators has increased to 34. Here’s what has changed:
Ind #23-26: An LEA has not drawn down federal grant funds by Jan 31, 2026 for IDEA B Formula, Preschool, Discretionary Deaf, Perkins, Title I Part A, Title Part C, Title I, Part D, Title II Part A, Title III Part A-ELA, Title III Part A-Immigrant, Title IV Part A.
Ind #27- An LEA carried over 40% or more across all three Special Education Consolidated Grants listed: IDEA B Formula, IDEA B Preschool, IDEA B Discretionary Deaf.
Ind #28-An LEA carried over 25% or more for any individual Special Education Consolidated Grants listed: IDEA B Formula, IDEA B Preschool, IDEA B Discretionary Deaf.
Ind #29-An LEA carried over 15% or more of their Title I, Part A Grant funds.
Ind #30-An LEA carried over 25% or more for any individual ESSA Consolidated Grant listed: Title I Part C, Title I Part D, Title II Part A, Title III Part A-ELA, Title III Part A-Immigrant, Title IV Part A.
Ind #32-An LEA did not expend 25% or more of their TEHCY Grant funds for FY25.
Ind #33-An LEA was referred for Non-Compliance due to a federal investigation finding for FY26.
For a full overview of all Risk Level indicators, please review the GCA Risk Assessment Process for 2026-27 and the resources om the GCA Risk Assessment page: Risk Assessment | Texas Education Agency
Note: The data for superintendent and CFO turnover comes from contacts in AskTED. If no name is entered, it will incur the same negative points as having a turnover. inSchools AskTED Tip
How Can I Access My Charter’s Risk Designation Report?
The reports are found in the Smartsheet Workapps system that is the same system used for ESSER reporting, Title IV reporting, and random validation submissions.
Access the TEA Smartsheet WorkApp site.
Select Risk Assessment WorkApp.
Select LEA Name and CDN when the 2026-27 GCA Risk Assessment page displays.
Click on the Attachments link and click on the LEA RA Report.pdf title.
The report will download to your computer's download folder.
Click on the downloaded report to view your 2026-27 LEA Risk Assessment Status Designation Report.
Each LEA report includes points assigned by indicator, total risk assessment score, and risk status designation for 2026-27.
The bottom line is that if you get grant funds, spend them! Do draw downs every month, and don’t be late for deadlines. Be aware of programmatic requirements and stay in compliance.
Need help?
Please contact inSchools: Sharon Benka - sbenka@theinschools.com