PA ID# 000-92101; Virgin Islands Water and Power Authority
DSR ID# 83336,83369,49719,49943; Audit Report E-21-95, Finding A
Citation: FEMA-841-DR-VI, P.A. 000-92101, Virgin Islands Water and Power Authority, DSRs 83336, 83369, 49719, and 49943, Audit Report E-21-95, Finding A
Cross-reference: Time Limits, Appeals, Acquisition of Supplies
Summary: Hurricane Hugo caused severe damage to the U.S. Virgin Islands and the President declared it a major disaster on September 20, 1989. FEMA approved several Damage Survey Reports for the Virgin Islands Water and Power Authority (WAPA) to restore electrical power to the islands. The FEMA Office of Inspector General audited WAPA and issued a report on March 23, 1995, wherein it questioned $4,425,141 in excess cost. FEMA subsequently deobligated these funds. WAPA claims that the questioned costs consisted of its undocumented use of materials ($2,022,343) as well as surplus inventory ($2,402,344). Further, it proposes in its second appeal that FEMA allow WAPA to liquidate all materials at $0.05 on the dollar and return these funds to FEMA. In addition, FEMA would reimburse WAPA $290,000 for "post-completion inventory management costs." This would account for the expenditure of all FEMA funds. The Disaster Recovery Manager denied WAPA's first appeal on July 13, 1998, because FEMA received the appeal more than three years after the regulatory deadline for submitting appeals. The Governor's Authorized Representative submitted WAPA's second appeal to FEMA by letter dated November 12, 1998. 44 CFR 206.206 states that applicants must submit appeals to the grantee within 60 days after receipt of notice of the action being appealed. The grantee will forward the appeal to the Regional Director within 60 days of receipt from the applicant.
Issues: Were appeals submitted according to the appeal procedures detailed in 44 CFR 206.206?