For many Texas Montessori owners, the transition from a private-pay model to accepting Texas Workforce Commission (TWC) subsidies is a smart business move that increases enrollment. However, it comes with a significant regulatory hurdle: the requirement for audited financial
statements.
According to TWC guidelines, providers participating in the Child Care Services (CCS) program must demonstrate financial stability to ensure public funds are being managed responsibly. While smaller providers with gross revenues under $100,000 may sometimes submit compiled statements, most established Montessori schools quickly exceed this threshold. For these
schools, a full audit performed by a Texas-licensed CPA is not just a “best practice”—it is a mandatory filing to maintain your contract.
A TWC-compliant audit focuses on more than just your bottom line. It verifies your current ratio, ensures that unearned tuition is properly recorded as a liability, and confirms that your school has the liquidity to remain operational through the fiscal year. By partnering with a CPA who understands the specific nuances of child care accounting, you can ensure your financial reporting meets TWC standards the first time, avoiding delays in funding or “high-risk” designations that can jeopardize your school’s standing.
If you’re interested in learning more about your financial statements audit or have any questions, please Contact Us.
Mohamed founded Metwally CPA PLLC in 2020 in the Dallas-Fort Worth metropolitan area. He holds active CPA license in the state of Texas and California. Mohamed is the firm’s Executive Director. Mohamed has a Master of Science (M.S.) degree in Accounting from University of Dallas. He has extensive assurance experience in a wide variety of industries, and he also devotes considerable time consulting and working with organizations and CPA firms on internal controls, audit quality, automation, and accounting best practices. He has over 15 years of audit experience.
Prior to founding the firm, Mohamed worked for big 4 and national firms for over than 10 years in the assurance practice. Mohamed worked on private clients as well as public clients and specialized in financial services sector.
He is a member of the Texas CPA Practice Issues, Diversity and Inclusion, and Governmental Accounting and Single Audits Conference Committees of Texas Society of CPAs.
Mohamed is a member of the American Institute of Certified Public Accountants, member of the AICPA small business group, member of the American institute of Certified Management Accountants, and Texas Society of Certified Public Accountants.
