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Second Appeal Summary
PA ID# 003-00000; Alpine County
DSR ID# Multiple; Equipment Rental Rates
Citation: Appeal Brief; Second Appeal; Alpine County; FEMA-1046-DR-CA; PA #003-00000
Cross-Reference: DSRs 71132, 28705, 28584, 28593, 28702, 71133, 20199 and 20200; Equipment Rental Rates
Summary: Following the 1995 winter storms in Alpine County (County), California, FEMA prepared DSRs 71132, 28705, 28584, 28593, 28702, 71133, 20199 and 20200 for $51,554 to remove debris and repair roadway damage. Upon review, FEMA eliminated the labor and benefits costs for category A work, and reduced the equipment rental rates to comply with FEMA cost codes. The revised cost for all the DSRs totaled $34,321. The State forwarded individual first appeals for each of the DSRs between May 31, 1996, and June 8, 1996. The basis of these appeals was that the overhead and indirect costs were deducted from the equipment rates, therefore the rates complied with FEMA's Cost Code Schedule. The County also indicated that the equipment rates had been audited by the California State Controller's Office (SCO). On January 17, 1997, the former Regional Director denied the first appeal. The basis of the denial was that the subgrantee provided no documentation to demonstrate how the current equipment rates were calculated or that the rates had been certified and verified by the SCO, as required under 44 CFR 206.228(a)(i). On August 15, 1997, the State forwarded the second appeal. The basis of the appeal is that the County's equipment rates were approved by the SCO and were established in accordance with the State guidelines of the Accounting Standards and Procedures for Counties Manual. In support of the appeal, an April 29, 1997, letter from the SCO was submitted which indicates that the County followed procedures of State guidelines and that the State audited the rates for accuracy for the year ending June 30, 1993. The Regional Director indicated that the subgrantee has provided adequate documentation to support their equipment rates up to $75 per hour, but does not support the rates above $75 per hour.
- Are the District's equipment rates, up to $75 per hour, eligible for FEMA reimbursement?
- Are the District's equipment rates, beyond $75 per hour, eligible for FEMA reimbursement?
- Yes. The letter from the SCO and usage records demonstrates that the rates were established under State guidelines. Additional eligible equipment costs total $9,709 (see attached summary).
- No. No documentation was provided to support the basis of the rates above $75 per hour.
Rationale: Pursuant to 44 CFR 206.228 (a)(1)(i), eligible direct costs include reimbursement of applicant-owned equipment with reasonable rates of $75 per hour or less, which have been established under State guidelines. Equipment rates in excess of $75 per hour shall be determined on a case by case basis.