TEA Begins Issuing FY2025 AFR Review Letters & Announces New School FIRST Appeal Process

What You Need to Know

The Texas Education Agency (TEA) has begun issuing FY2025 Annual Financial Report (AFR) Review Letters through the new Audit 2.0 application.

These letters communicate the results of TEA's review of your FY2025 Annual Financial Report and may require action within a specified deadline.

In addition, TEA has announced a new electronic appeal process for School FIRST ratings that will be used beginning with the upcoming preliminary ratings release.

📌 Action Item #1 – Watch for Your FY2025 AFR Review Letter

Review letters are now being distributed by email with the subject:
Audit 2.0 AFR Review Letter Attached for District [District Name] for Fiscal Year 2025

The notification will be sent through Audit 2.0 to the email addresses maintained in AskTED, including:

• Superintendent

• Chief Financial Officer (CFO)

• Board President

The district's independent auditor (CPA) will also receive notification using the email entered during the FY2025 AFR submission.

📌 Verify Your AskTED Contact Information

Because Audit 2.0 relies on AskTED contact information, districts and charter schools should immediately verify that:

✅ Superintendent email is current
✅ CFO/Business Official email is current
✅ Board President email is current

Outdated contact information could delay receipt of important compliance notices.

📌 Monitor Audit 2.0 in TEAL

Even if the email is missed, the review letter will remain available in Audit 2.0 within TEAL.

Navigate to:
Audit 2.0 → View District Status

Your review status will appear at the bottom of the page.

Possible Statuses

• 🟡 TEA AFR Review in Progress

  • Your report is still under review.

• 🟢 Review Completed

  • The review has been completed with no additional response required.

  • You will see:

    • Closed Date

    • View Letter

    • Download Letter

• 🔴 Response Required

  • If TEA requires additional information, the system will display:

    • TEA Waiting for Response to Letter
      along with:

      • Due Date

      • View Letter

      • Download Letter

      • Upload AFR Letter Response
        
        

Important: Only submit documentation requested in the review letter. Corrections unrelated to TEA's requested response should not be included.

NEW: School FIRST Appeal Process

TEA has also introduced a new electronic appeal process for School FIRST.

Beginning with the release of the preliminary ratings next month:

• Appeals must be submitted directly within the School FIRST application in TEAL.

• Appeals will now be submitted by individual indicator, rather than through a general appeal.
  
  

For each indicator:

1. Select the Indicator Detail tab.

2. Click the Appeal button.

3. Enter the explanation supporting the appeal.

4. Upload supporting documentation.

5. Track progress using the new Appeals Summary page.
   

This process mirrors the Charter FIRST appeal process implemented last year.

Recommended Next Steps

Finance Directors should:

• ✔ Verify AskTED contact information.

• ✔ Monitor Audit 2.0 for AFR review status.

• ✔ Respond promptly if TEA requests additional information.

• ✔ Review preliminary School FIRST ratings as soon as they are released.

• ✔ Begin gathering supporting documentation early if an appeal may be necessary.

Why This Matters

TEA's Audit 2.0 platform centralizes the AFR review process and establishes firm response timelines. Missing a review letter or failing to respond by the due date can delay closure of the annual financial reporting process. Likewise, the new School FIRST appeal workflow requires schools to provide indicator-specific documentation directly within the TEAL application, making timely review of preliminary ratings more important than ever.

Need assistance?

The inSchools Finance Team can assist your district or charter school with:

• Reviewing TEA AFR Review Letters

• Preparing response documentation

• Evaluating School FIRST indicators

• Developing and submitting School FIRST appeals

• Interpreting Audit 2.0 findings and compliance requirements

Stay informed. Stay compliant. Stay ahead with inSchools.