Legislative Requirement
An Audit of the Texas Education Agency
August 2026
Overview
Overall, the Texas Education Agency (Agency) established comprehensive policies and processes that address the administration and oversight of contracts, grants, open-enrollment charter schools, and expenditure processing. However, the Agency's hiring practices created a management-heavy structure.
While no unallowable expenses were identified, the Agency could strengthen the administration of pre-kindergarten public-private partnerships, digital signature oversight, certain contract management activities, and the oversight of State-funded grants.
Agency Administration
MANAGEMENT-TO-STAFF RATIO
The Agency did not comply with statutory limitations on its ratio of management to staff. Page 3
CONTRACTING
The Agency overall fulfilled contracting requirements, but it should strengthen its compliance with vendor selection and formation requirements. Page 5
EXPENDITURES
All procurement and travel expenses tested were allowable and recorded accurately, but the Agency's travel expenditure process did not align with its policy. Page 8
Program Administration
STATE-FUNDED GRANTS
The Agency monitored State-funded grants, but the level of monitoring was inconsistent across grant programs because it had not established minimum guidelines. Page 13
PRE-KINDERGARTEN EXPANSION MONITORING
The Agency did not verify that school expansions with private pre-kindergarten providers met specific standards and regulations. Page 16
OPEN-ENROLLMENT CHARTER SCHOOLS
The Agency had processes and safeguards for administration and oversight of its open-enrollment charter schools. Page 17
