(1) If through the monitoring procedures defined in ARM 10.16.3141, or through other means, the Office of Public Instruction determines that IDEA funds have been made available to a local educational agency as the result of misclassified children, the Office of Public Instruction shall send written notice to the local educational agency.

(a) The notice shall include a statement of the number of misclassified children, means by which the misclassified children were discovered, specific determination of each occurrence of misclassification, and amount, schedule of payment, options for resolving and method of returning funds for misclassified children to the Office of Public Instruction.

(b) The notice must also include a statement of the local educational agency's right to a hearing.

(2) A local educational agency shall have 14 days from receipt of the notice in which to reply in writing to the Office of Public Instruction regarding the accuracy or completeness of its findings.

(3) Upon receipt of the written reply from the local educational agency, the Office of Public Instruction shall review and, if necessary, revise its findings. The Office of Public Instruction shall send written response of its review of the local educational agency reply within 14 days of receipt of the reply.

(4) If a local educational agency disagrees with the findings of the Office of Public Instruction in regard to IDEA funds made available to the local educational agency as a result of misclassified children, the local educational agency may request a hearing under ARM 10.16.3196.