Annual Financial Report J-1 Verification and Correction for the Fiscal Year-End 2023
The following message is not applicable to charter schools.
School districts are entitled to additional state aid for taxes refunded under the Tax Code, Section 26.1115(c). The TEC, Section 48.2541, Additional State Aid for Certain Ad Valorem Tax Refunds, provides that for each school year, a school district, including a school district that is otherwise ineligible for state aid under this chapter, is entitled to state aid in an amount equal to the amount of all tax refunds provided under Section 26.1115(c), Tax Code. Information about this new data reporting requirement was also shared in a Public School Funding Updates list serv dated June 1, 2023, announcing the opening of the annual tax information survey.
Due to a large number of data discrepancies identified by School Finance Department personnel, districts are asked to confirm the taxes refunded data they uploaded in their FY2023 Annual Financial Report Submission and ensure that this data matches their J-1 schedule included in their Annual Financial Report.
Note that this data reporting also impacts districts’ 2022-2023 Tier Two funding under the TEC, Section 48.202(e-1). Districts’ latest 2022-2023 SOF reports have not been updated with final taxes refunded data and still reflect values reported in the tax information survey that were incorporated into the SOF reports last September at near-final settle up. If corrections to reported taxes refunded on the J-1 schedule are needed, submit your revised taxes refunded data no later than Friday, May 10, using the instructions below.
Final taxes refunded data reported by districts will be incorporated in a forthcoming final settle-up SOF run and will replace any values previously submitted in the tax information survey. Failure to respond to this message or to reconcile the district’s taxes refunded amounts will result in TEA using the originally reported amount in the Annual Financial Report Submission data feed.
Questions should be directed to FinancialDeskReviews@tea.texas.gov or taxprograms@tea.texas.gov.
Please review your fiscal year 2023 annual financial report submitted to TEA by logging into your Audit application account in TEAL.
The amount of tax year 2022 taxes refunded under Section 26,1115(c), Tax Code, should have been reported using the newly formatted J-1 schedule row 8000, column 31-Maintenance Tax Collections.
The total amount of taxes refunded, both M&O and I&S tax refunds, should be reported in row 8000, column 31. The amount is always a positive number with no decimals.
Please note that the tax refund amount should be netted from the total tax collections reported on row 1000. This is detailed in your Tax Information Survey and Summary of Finances M&O Collections Detail Report.
 Open the Audit application:
- Select the year 2022-2023 (fiscal year 2023) if it is not already displayed.
- To view the PDF copy of your 2023 annual financial report, select the VIEW District Status menu option, followed by clicking on the Display button to view the PDF copy of your 2023 annual financial report.
- To view the data feed schedule and the amount reported for taxes refunded on row 8000 Taxes Refunded, select the ENTER and/or FINALIZE Schedules menu option, followed by clicking on the Display button. Select the J1 tab.
- If both the J-1 PDF and data schedule are correct and consistent, nothing else needs to be done.
- If the J-1 data schedule is correct but corrections to the J-1 PDF are needed, submit the PDF corrections by the end of day, Friday, May 10.
- If the J-1 PDF is correct but corrections to the J-1 data schedule are needed, please email FinancialDeskReviews@tea.texas.gov requesting the J-1 data feed be re-opened so that corrections can be made.
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The request to re-open the data feed must come from a district official who has access to make the corrections and re-finalize the data feed schedule.
- The email subject line should state, Request to Re-Open J-1 for Tax Refund Correction.
- Email should include your school district name, six-digit county-district number, and request the J-1 to be re-opened for tax refund corrections.
- Requests for the data feed to be re-opened must be submitted by Wednesday, May 8, and the corrections must be made and re-finalized by Friday, May 10.
- Please allow 24 hours for a response to your email.
Please refer to the Annual Financial Report Data Feed Standards manual and the Electronic Submissions web page for additional information.
Financial Compliance Division and State Funding Division
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