Formal Appeal Ι Deadline for Formal Appeal Ι Formal Appeal Procedures

Formal Appeal

The Panel hears formal appeals by local educational agencies (LEAs) of audit findings on the basis of errors of fact or interpretation of law, or of substantial compliance with the law. The Panel hears those appeals pursuant to the adjudicative provisions of the Administrative Procedure Act. The State Controller and the Department of Finance are a party to all appeals, and the Department of Education is authorized to intervene as a party in any appeal.

The right to a formal appeal to the Panel is independent of the summary review process. If an LEA is dissatisfied with the outcome of a summary review and chooses to pursue a formal appeal, the formal appeal is de novo, as if the summary review had never taken place.

Deadline for Formal Appeal

Upon receipt of a letter from the State Controller’s Office certifying that the audit report conforms to the reporting standards contained in the audit guide, an LEA has 60 days in which to request a formal appeal from EAAP. If the local education agency has submitted a request for summary review, the LEA has 30 days after receipt of the EAAP determination letter in which to file a request for formal appeal of the finding(s) involved in the summary review.

An LEA may choose to file a request for formal appeal without first requesting a summary review.

Formal Appeal Procedures

File a written notice of appeal with the Executive Officer of EAAP via email to filing@eaap.ca.gov, or by mail to 770 L Street, Suite 1100, Sacramento 95814.
(An emailed request may be the most reliable way to ensure that the deadline is met.)

The following information should be included in the request:

• LEA name
• Fiscal year audited
• Statement that the LEA is requesting a formal appeal of the finding(s)
• Finding number(s) for which an appeal is requested

Please encrypt any confidential information submitted via email.

The law provides that a hearing shall be held in each appeal to the Panel, and that the Panel shall consider appeals pursuant to the provisions of the Administrative Procedure Act. Upon receipt of the notice of appeal, the Panel typically refers the appeal to the Office of Administrative Hearings, which designates an administrative law judge. After conducting a hearing and considering evidence, the administrative law judge proposes a decision for the Panel’s consideration. Pursuant to Government Code section 11517(c), the Panel may adopt the decision as proposed, adopt it with limited modifications, reject it and decide the case itself based on the administrative record, or remand the case to the administrative law judge for taking further evidence.

If the Panel determines that the appealing LEA is correct in its assertion of error with regard to an audit finding, and was in compliance with applicable requirements, the LEA is freed of its obligation to repay the penalty or apportioned funding associated with the finding. If the Panel finds there was substantial compliance, it may waive or reduce the payment otherwise required and may also order other remedial measures sufficient to induce full compliance in the future. The decision of the Panel will be posted on the EAAP website and will be sent via certified mail to all parties to the case. Any party to an appeal may seek review in the courts.

Statutes and Regulations Governing the Audit Guide, Appeals and Requests for Summary Review  

Education Code sections 14502.1, 41344, 41344.1

California Code of Regulations, Title 5, Division 1.5 sections 19800, 19803, 19804, 19805, 19810