The Panel hears appeals by 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 Controller is a party to every appeal, and the Departments of Education and Finance are authorized to intervene as parties.

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.