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Second Appeal Brief
PA ID# 055-99055-00; Monroe County
PW ID# Various Project Worksheets; Cost Overruns
Citation: FEMA-1467-DR-NY, Monroe County, Cost Overruns
Cross-reference: Cost Overruns
Summary: As a result of a severe ice storm the Applicant removed debris from county roads and installed temporary power to its wastewater plant. Nineteen PWs were prepared and obligated in August 2003. All work was completed by November 12, 2003. On January 28, 2005 the Applicant submitted Project Completion and Certification Reports (P-4s) on all projects and, requested reimbursement for cost overruns totaling $132,346.36 on PWs 816, 818, 914, and 926. Region II denied this request because the Applicant did not meet the requirements of 44 CFR §206.202(d)(ii). The Applicant filed a first appeal on July 5, 2005 arguing that the cost overruns were all related to PWs that previously had been approved. Region II denied the first appeal because the approved PWs had been marked 100% complete at the time of obligation. The Applicant filed a second appeal dated October 25, 2005 arguing that the cost overruns had not been discovered until a county audit associated with preparation of the P-4s.
Issues: 1. Are cost overruns eligible for funding after a PW has been obligated?
Findings: 1. Yes; however, the regulations establish a 60-day deadline for requesting consideration of cost overruns on small projects; there no such deadline for large project cost overruns.
Rationale: 44 CFR §206.204(e)