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Second Appeal Summary
PA ID# 000-92003; Pennsylvania Department of Transportation
DSR ID# N/A; Fringe Benefits
Citation: FEMA-1130-DR-PA & FEMA-1138-DR-PA; Pennsylvania Department of Transportation (PennDOT)
Cross Reference: Fringe Benefits
Summary: PennDOT is requesting that a fringe benefit rate of 61.4287 percent be allowed for reimbursement of all labor for disasters 1130 and 1138. The Regional Director denied a first appeal because the requested rate was not an accurate assessment of actual fringe benefit costs incurred by PennDOT. PennDOT calculates its fringe benefit rate by dividing total benefits paid for the previous fiscal year by total direct payroll for the same year. This actual historic rate is used as the estimated rate for the following year. The denominator (direct payroll) includes costs for part-time and temporary employees and overtime pay for all employees. PennDOT contends that because the Federal Highway Administration (FHWA) accepts their fringe benefit rate, FEMA should also.
Issues: Should FEMA accept the requested fringe benefit rate?
Findings: No. The requested fringe benefit rate calculation includes costs for work that is not disaster related, and does not distinguish between regular hours and overtime.
Rationale: Many fringe benefits do not increase in proportion to overtime hours worked.