Administrative Leave

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-3131-EM
ApplicantFlorida International University
Appeal TypeSecond
PA ID#000-92013
PW ID#22797, 22798, 78634, 78635
Date Signed2001-06-25T04:00:00
Citation: FEMA-3131-EM-FL, PA ID 000-92013, Florida International University, DSRs 22797, 22798, 78634, 78635, Administrative Leave

Cross-reference: Force Account Labor Costs, Emergency Work

Summary: The Florida International University (University) closed from Thursday, September 24 to Sunday, September 27, 1998, based on hurricane warnings from the National Hurricane Center. Non-essential employees were sent home on administrative leave and paid their regular-time salaries for missed work. On March 23, 1999, Damage Survey Reports (DSRs) 22797 and 22798 were prepared for a total of $1,213,196 to reimburse the University for force account labor costs. Upon review, FEMA determined that the employees did not perform eligible emergency work and the DSRs were deobligated. In its first appeal, the University claimed that granting administrative leave was an emergency protective measure and the costs of granting administrative leave should be eligible. It stated that eligible labor costs should not be limited to those associated with the physical performance of work. FEMA denied the appeal because the University employees did not perform eligible work. The University submitted its second appeal on November 14, 2000.

Issues: 1) Does FEMA reimburse the costs of straight- or regular-time salaries paid to an applicant's permanent employees who perform emergency work? 2) Did University employees perform eligible disaster-related work?

Findings: 1) In general, no. However, Amendment #6 to the FEMA/State agreement for this emergency declaration states that these are eligible costs. 2) No.

Rationale: 44 CFR  206.201(b)

Appeal Letter

June 25, 2001

Craig Fugate
Governor's Authorized Representative
Department of Community Affairs
2555 Shumard Oak Boulevard
Tallahassee, Florida 32399-2100

Re: Second Appeal - Florida International University PA ID # 000-92013, Administrative Leave, FEMA-3131-EM-FL, DSRs 22797 and 22798

Dear Mr. Fugate:

This is in response to the referenced appeal forwarded by your office on January 4, 2001. The Florida International University (University) is requesting $1,213,196 in administrative leave costs paid to non-essential employees who were sent home from work during Hurricane Georges.

Based on a hurricane warning from the National Hurricane Center, the University closed from Thursday, September 24 to Sunday, September 27, 1998. Non-essential employees were sent home and paid administrative leave for their scheduled regular-time hours. Damage Survey Reports (DSRs) 22797 and 22798 were prepared for a total of $1,213,196 on March 23, 1999, to reimburse the University for force account labor costs. During the final inspection, FEMA found that University employees had not performed any eligible work and the DSRs were deobligated on February 4, 2000.

The University submitted its first appeal on June 29, 2000. It claimed that granting administrative leave to its non-essential employees during a hurricane warning was an emergency protective measure as defined by 44 CFR  206.225(a). It stated that labor costs are not limited to those associated with the physical performance of emergency work. Instead, it asked that FEMA recognize administrative leave as an emergency protective measure. FEMA denied the first appeal on August 24, 2000, because no eligible work was performed. The University submitted its second appeal on November 14, 2000. In its transmittal letter, the State asked FEMA to address issues it had raised in its submittal of the first appeal. It claimed that 44 CFR  206.228 (a)(4), which states that the straight- or regular-time salaries of an applicant's permanent employees are not eligible costs, does not apply to emergency declarations. The State also argued that the administrative leave costs were an extraordinary expense associated with providing shelter space, and should be eligible.

Normally, FEMA does not reimburse the cost of straight- or regular-time salaries paid to an applicant's permanent employees who perform emergency work. The State is correct in asserting that this rule does not necessarily apply to emergency declarations. Amendment #6 to the FEMA-State agreement for this declaration makes an exception to this policy, stating that the straight- or regular-time salaries and benefits of permanent employees performing emergency work are eligible costs. This one-time change in policy has no effect in this situation because the University employees sent home on administrative leave did not perform any disaster-related work. FEMA does not reimburse the cost of salaries and benefits for employees sent home or told not to report to work due to emergency conditions. For this reason, I am denying this appeal.

Please inform the applicant of this determination. My decision constitutes the final decision on this matter as set forth in 44 CFR  206.206.

Sincerely,
/S/
Lacy E. Suiter
Assistant Director
Readiness, Response and Recovery Directorate

cc: Mary Lynne Miller
Acting Regional Director
FEMA Region IV



Last updated