Appeal Summary | Appeal Letter | Back
Second Appeal Summary
PA ID# 041-00000; Florence County
DSR ID# N/A; Project Management Costs
Citation: FEMA-0881-DR-SC; Florence County, Project Management Costs (PMCs)
Cross Reference: Project Management Costs, Precedence
Summary: The October 1990 flood disaster caused extensive damage to Florence County, South Carolina. Damage survey reports (DSRs) were prepared following the disaster, and funding for disaster-related expenses were provided accordingly. After an audit by the Office of Inspector General and subsequent meetings, the Town of Mount Pleasant was reimbursed for expenses previously denied. The State Public Assistance Program then issued Guidance No. 13-94 dated October 26, 1994. This guidance was prepared to notify applicant agents that their entities may be entitled to additional funding, including various project management expenses, due to the precedent set by the Mount Pleasant decision. Florence County submitted a request for additional FEMA funding for costs considered to be associated with project management activities. Although the request was submitted well beyond the allowable deadline for reporting damages, the Region accepted the request for consideration of eligibility. The costs were denied based on various program issues. The State forwarded the applicant's first appeal with a letter of transmittal dated January 21, 1997. The applicant requested $91,621 for PMCs. A review of the applicant's files showed that the total amount obligated was $68,210. The Regional Director upheld this determination of ineligibility on first appeal for the following reasons: 1) Many PMCs being appealed are related to DSRs that are less than the small project threshold and, therefore, will not be supplemented without performing a small project netting; 2) many costs were not associated with a project under specific DSRs and are, therefore, considered indirect costs. The State forwarded the applicant's second appeal with a letter dated November 20, 1997. The primary issue of the second appeal is that these costs were not reviewed by FEMA using the same criteria as previous claims for PMCs for other applicants. The applicant contends that the costs are eligible for FEMA funding.
- Are the requested PMCs eligible for FEMA funding?
- Does FEMA use different criteria to evaluate requests for assistance?
- No. The determinations of ineligibility for the requested funds are consistent with FEMA regulation and policy.
- No. All claims are evaluated based on the Stafford Act and the regulations in place at the time of the disaster.
Rationale: The PMCs submitted do not satisfy eligibility criteria for FEMA funding as defined in the Stafford Act and 44 CFR 206.