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Information About Financial Reviews for Private Schools

The financial review is part of the initial license application process for new private schools. This step is required by Texas Admin. Code §83.23(a)(6).

The review is intended to confirm that schools are fiscally sound and have a low-risk of closing due to financial insecurity.

Subject of the Review

The review is completed on the owner of the school:

Financial Statements

A “financial statement” is a record of the financial activities and position of a business, person or entity. Relevant financial information should be provided in a structured manner.

TDLR recommends providing a balance sheet with your financial statement, which summarizes the company’s financial position. The balance sheet should include the company’s assets, liabilities, and equity at a particular point in time.

Current Statement

The financial statement delivered to TDLR may not be older than 180 days.

If the financial statement is more than 180 days old, you must also provide a supplemental financial statement that was prepared within 180 days of the application.

CPA Requirement

A financial statement must be prepared by a CPA and include a notice that “no assurance is provided” on the financial statement. This is because the CPA is preparing the statement using the records provided by the business or individual and the information has not been verified for accuracy.

Compilation is the most popular method, in which a CPA is not checking facts but is providing the financial statement based on the information provided by the client.

Submitting a Financial Statement

Financial statements should be submitted with your completed license application form.

If you have already submitted your license application, please contact us and include the documents as attached files.