Equipment Costs
Appeal Brief
Appeal Letter
Citation: FEMA-1299-DR-SC; Horry County, Equipment Costs; Project Worksheet (PW) 416
Cross-reference: General Eligibility
Summary: In September of 1999, Hurricane Floyd struck Horry County, South Carolina (County) resulting in a major disaster declaration. The Federal Emergency Management Agency (FEMA) approved PW 416-0 in November 1999 for $516,463 for various emergency protective measures. On May 22, 2000, FEMA approved version 1 of PW 416 to de-obligate $250,458 of ineligible costs, which the County did not challenge. Following an audit report from FEMAs Office of the Inspector General in February 2002, FEMA approved version 2 of PW 416 to de-obligate $26,002 of ineligible equipment costs for fire department personnel on August 12, 2002. The County submitted a first appeal on November 22, 2002, claiming that the fire department staff was providing specific management of eligible work, and therefore, the equipment costs of the associated work should have been eligible. The FEMA Region IV Regional Director denied the appeal on February 20, 2003, because the labor costs were not eligible, the associated equipment costs were not eligible for reimbursement as well. The County submitted its second appeal on May 21, 2003. The County re-stated that the fire department staff was performing eligible work and as such the associated equipments costs should be allowed. The State of South Carolina supports the Countys second appeal for $26,002.
Issues: Are the equipment costs eligible for reimbursement?
Findings: No. The Applicant did not submit any documentation to demonstrate that the equipment was eligible.
Rationale: 44 CFR §206.228(a)(1)
Appeal Brief
| Disaster | FEMA-1299-DR |
| Applicant | Horry County |
| Appeal Type | Second |
| PA ID# | 051-99051-00 |
| PW ID# | 416 |
| Date Signed | 2004-03-16T05:00:00 |
Appeal Letter
March 16, 2004
Mr. Ronald C. Osborne
Governors Authorized Representative
South Carolina Emergency Management Division
Office of the Adjutant General
1100 Fish Hatchery Road
West Columbia, South Carolina 29172
Re: Second Appeal Horry County, PA ID 051-99051-00, Equipment Costs, FEMA-1299-DR-SC, Project Worksheet (PW) 416
Dear Mr. Osborne:
This is in response to your letter dated July 17, 2003, that transmitted the referenced second appeal on behalf of Horry County (County). The County is requesting reconsideration of the Federal Emergency Management Agencys (FEMAs) reduction of $26,002 based on an Office of Inspector Generals Audit Report. The reduction of funding was for equipment costs incurred by the Fire Chief and Battalion Chiefs for the performance of ineligible work in the aftermath of Hurricane Floyd.
In September of 1999, Hurricane Floyd struck the County resulting in a major disaster declaration. FEMA approved PW 416-0 in November 1999 for $516,463 for various emergency protective measures. On May 22, 2000, FEMA approved version 1 of PW 416 to de-obligate $250,458 of ineligible force account equipment and labor, which the County did not challenge. A subsequent audit report from FEMAs Office of the Inspector General in February 2002, questioned $41,086 where the County calculated police vehicle usage hours based on the hours that the assigned police officers were on duty rather than the actual hours that the vehicles were in operation. The County did not dispute this questioned charge. The audit report also questioned $3,324 for vehicles used by the fire chief and assistant chief and $22,680 for 11 pick-up trucks used by battalion chiefs. The audit report stated that the fire chief and assistant chief provide overall management of the fire department and, therefore, costs associated with their positions were not eligible for reimbursement. According to the audit report, the claimed costs for the 11 pick-up trucks appeared excessive and the battalion chiefs performed activities while on duty that did not require the use of their vehicle. As a result of the audit report, FEMA de-obligated the $41,086 with PW 417 and the $26,002 with version 2 of PW 416.
The County submitted a first appeal on November 22, 2002, claiming that the fire chief and battalion chiefs were providing specific management of eligible work, and therefore, the $26,002 of equipment costs of the associated work should have been eligible. The FEMA Region IV Regional Director denied the appeal on February 20, 2003, because the labor costs were not eligible; therefore, the associated equipment costs were not eligible as well.
The County submitted its second appeal on May 21, 2003. The County re-stated that the fire chief and battalion chiefs were performing eligible work and as such the associated equipments costs should be allowed. In reviewing the second appeal package, FEMA found that the County failed to submit any documentation to specify what the work was that the fire chief and assistant chief performed and why it should be eligible. The only statement from the County is in its appeal letter these people were performing very specific management directly relating to the Hurricane/Flood. This statement is not sufficient to support the claim that the work was eligible. Also, the County did not submit documentation to explain why its claim for $22,680 for 11 pick-up trucks was not excessive or when exactly the vehicles were in use. According to the audit report, the battalion chiefs performed various activities while on duty that did not require the use of their vehicle. Based on these reasons, I am denying the appeal.
Please inform the County of my decision. My determination constitutes the final decision on this matter as set forth in 44 CFR §206.206.
Sincerely,
/S/
Daniel A. Craig
Director
Recovery Division
Emergency Preparedness and Response
cc: Mary Lynne Miller
Acting Regional Director
FEMA, Region IV
Mr. Ronald C. Osborne
Governors Authorized Representative
South Carolina Emergency Management Division
Office of the Adjutant General
1100 Fish Hatchery Road
West Columbia, South Carolina 29172
Re: Second Appeal Horry County, PA ID 051-99051-00, Equipment Costs, FEMA-1299-DR-SC, Project Worksheet (PW) 416
Dear Mr. Osborne:
This is in response to your letter dated July 17, 2003, that transmitted the referenced second appeal on behalf of Horry County (County). The County is requesting reconsideration of the Federal Emergency Management Agencys (FEMAs) reduction of $26,002 based on an Office of Inspector Generals Audit Report. The reduction of funding was for equipment costs incurred by the Fire Chief and Battalion Chiefs for the performance of ineligible work in the aftermath of Hurricane Floyd.
In September of 1999, Hurricane Floyd struck the County resulting in a major disaster declaration. FEMA approved PW 416-0 in November 1999 for $516,463 for various emergency protective measures. On May 22, 2000, FEMA approved version 1 of PW 416 to de-obligate $250,458 of ineligible force account equipment and labor, which the County did not challenge. A subsequent audit report from FEMAs Office of the Inspector General in February 2002, questioned $41,086 where the County calculated police vehicle usage hours based on the hours that the assigned police officers were on duty rather than the actual hours that the vehicles were in operation. The County did not dispute this questioned charge. The audit report also questioned $3,324 for vehicles used by the fire chief and assistant chief and $22,680 for 11 pick-up trucks used by battalion chiefs. The audit report stated that the fire chief and assistant chief provide overall management of the fire department and, therefore, costs associated with their positions were not eligible for reimbursement. According to the audit report, the claimed costs for the 11 pick-up trucks appeared excessive and the battalion chiefs performed activities while on duty that did not require the use of their vehicle. As a result of the audit report, FEMA de-obligated the $41,086 with PW 417 and the $26,002 with version 2 of PW 416.
The County submitted a first appeal on November 22, 2002, claiming that the fire chief and battalion chiefs were providing specific management of eligible work, and therefore, the $26,002 of equipment costs of the associated work should have been eligible. The FEMA Region IV Regional Director denied the appeal on February 20, 2003, because the labor costs were not eligible; therefore, the associated equipment costs were not eligible as well.
The County submitted its second appeal on May 21, 2003. The County re-stated that the fire chief and battalion chiefs were performing eligible work and as such the associated equipments costs should be allowed. In reviewing the second appeal package, FEMA found that the County failed to submit any documentation to specify what the work was that the fire chief and assistant chief performed and why it should be eligible. The only statement from the County is in its appeal letter these people were performing very specific management directly relating to the Hurricane/Flood. This statement is not sufficient to support the claim that the work was eligible. Also, the County did not submit documentation to explain why its claim for $22,680 for 11 pick-up trucks was not excessive or when exactly the vehicles were in use. According to the audit report, the battalion chiefs performed various activities while on duty that did not require the use of their vehicle. Based on these reasons, I am denying the appeal.
Please inform the County of my decision. My determination constitutes the final decision on this matter as set forth in 44 CFR §206.206.
Sincerely,
/S/
Daniel A. Craig
Director
Recovery Division
Emergency Preparedness and Response
cc: Mary Lynne Miller
Acting Regional Director
FEMA, Region IV
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