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Second Appeal Summary
PA ID# 089-00000; DeKalb County
DSR ID# 39093, 90909, 90919; Office of Inspector General (OIG) Audit Report No. E-30-01
Citation: FEMA-1209-DR-GA; DeKalb County; OIG Audit Report E-30-01
Cross-reference: Debris removal, demolition, legal responsibility, contract cap, OIG, audit report
Summary: Beginning on February 14, 1998, severe storms and flooding struck DeKalb County, Georgia resulting in a major disaster declaration. FEMA prepared Damage Survey Reports (DSRs) 39093, 90909, 90919 to fund debris removal, demolition of damaged residences, and repairs to recreational facilities within the County. Following closeout of the projects, FEMA's Office of Inspector General (OIG) audited the projects. The audit report questioned costs of $404,633 and recommended the de-obligation of the $404,633 and an additional $83,197. The audit report concluded that the County performed ineligible demolition and debris removal work in the form of removing slabs and other items and removal of debris from storms that were not included in the disaster declaration. The report also questioned costs associated with insurance proceeds that were not credited to the demolition work, excess charges for a performance bond, the repair of recreation facilities that were not the County's legal responsibility, and the interest earned on unused FEMA funds. Based on these findings, the Regional Director de-obligated funds totaling $487,830. The County submitted a first appeal of this decision, but did not disagree with all of the audit findings. The Regional Director denied the first appeal. The County's second appeal asserts that the slabs, driveways, and basements were damaged by the disaster and, therefore, the cost to remove them is eligible for funding. The County also asserts that the costs for removing debris not related to the disaster and the excess charges for the performance bonds are eligible because additional eligible work was performed that the County did not pay for because the cost exceeded the contract cap. The applicant asserts that FEMA should fund this other eligible work that was not paid for in lieu of the ineligible work.
Issues: 1. Are the removal of slabs, driveways, and basements eligible for funding?
2. Is the non-disaster related debris removal eligible for funding?
3. Is the County eligible to receive funding for the repair of the Brook Run facilities?
Findings: 1. Yes. The slabs, driveways, and basements were damaged by the disaster or during the performance of eligible demolition work.
2. No. The work must be required as the result of the major disaster event.
3. Yes. Both the State and the County are eligible applicants. Therefore, the repair of the recreation facilities is eligible for reimbursement.
Rationale: 44 CFR §§206.223(a)(1), 206.223(a)(3), 206.224(a)(1)