Summary Review

Summary Review Ι Deadline for Summary Review Ι Summary Review Procedures

Pursuant to Education Code Section 41344.1(d), a local educational agency (LEA) may request a summary review of audit exceptions on the grounds of substantial compliance. Substantial compliance means nearly complete satisfaction of all material requirements of a funding program that provides an educational benefit consistent with the program’s purpose. A minor or inadvertent noncompliance may be grounds for a finding of substantial compliance provided that the LEA can demonstrate it acted in good faith to comply with the law and/or regulation necessary for apportionment of funding.

The summary review process is voluntary and informal, does not involve a hearing, and is not subject to the provisions of the Administrative Procedure Act. For exceptions involving amounts that meet or exceed 150 units of average daily attendance, or the equivalent value of 150 units of average daily attendance multiplied by the statewide average local control funding formula rate for the corresponding audit year, posted on the California Department of Education’s webpage, waiving or reducing the reimbursement or penalty also requires written approval of the Department of Finance and the Superintendent of Public Instruction.

If the conditions for finding substantial compliance are not clearly met or involve substantial questions of fact, and the Executive Officer denies the request, the LEA will then have 30 days to initiate the formal appeal process.

Deadline for Summary Review

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 30 days in which to request a summary review from EAAP. The filing of a waiver request with a County Office of Education or the State Board of Education does not extend or alter this deadline.

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

Summary Review Procedures

File a request for summary review 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 summary review of the finding(s)
Finding number(s) for which a review is requested
As to each disputed finding, the facts and reasons behind the LEA claim of substantial compliance

Please encrypt any confidential information submitted via email.

LEAs may also submit documentation to support their claim, or note in the request that supporting materials will be provided at a later date. Any information that the LEA believes supports its claim should be made available to EAAP. Once EAAP verifies that the request has been filed timely, a case number will be assigned and an acknowledgement of receipt letter will be sent to the LEA. During the review period, EAAP staff may call the LEA for additional information.

Based on the review, the EAAP Executive Officer may waive or reduce the reimbursement or penalty, or find that substantial compliance was not clearly met. The LEA will be sent a summary review determination letter which provides the Executive Officer decision. If complete relief is not granted, the determination letter will provide additional information for if the LEA chooses to request for formal appeal.

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