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Second Appeal Summary
PA ID# 059-36770; City of Irvine
DSR ID# N/A; Net Small Project Overrun
Citation: FEMA-979-DR-CA; City of Irvine; Net Small Project Overrun (NSPO)
Cross Reference: 44 CFR 206.204 (e) - Cost Overruns
Summary: The winter storms of 1993 (FEMA-979-DR-CA) caused damage in the City of Irvine. Various DSRs were prepared to provide FEMA funding. The City of Irvine (subgrantee) completed all of its small projects by December 3, 1993, and incurred an NSPO. The subgrantee submitted a Project Completion and Certification Report (P.4) to the state indicating an NSPO. FEMA Region IX received the subgrantee's P.4 from the state on November 6, 1997, without adequate supporting documentation. FEMA did not approve additional funding for the NSPO, because the request was received past the established deadline for the submittal of all NSPOs. The Disaster Recovery Manager (DRM) for all open Region IX post-Stafford Act disasters established a deadline of August 31, 1997, for the receipt of all NSPO submittals from subgrantee's which had completed all small projects on or before April 30, 1997. The subgrantee's request was received two months after the deadline had passed with no supporting documentation. The subgrantee's first appeal was denied, because there was no justification for the late NSPO submittal. In its second appeal the subgrantee requests reconsideration, because the state was responsible for submitting the NSPO to FEMA past the deadline, not the subgrantee.
Issues: Did the subgrantee's request for additional funding for its NSPO contain supporting documentation for all small projects?
Findings: No, the request was submitted with no supporting documentation.
Rationale: According to 44 CFR 206.204(e), when a subgrantee discovers a significant overrun related to the final cost for all small projects, the subgrantee may submit an appeal for additional funding in accordance with 44 CFR 206.206 within 60 days following the completion of all of its small projects. In accordance with 44 CFR 206.206(a), the appeal must contain documented justification supporting its position. The submittal of a signed P.4 alone does not satisfy the requirements for submittal of an appeal for additional funding for an NSPO.