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Second Appeal Brief
PA ID# 201-35000-00; City of Houston
PW ID# 19, 55, 759, 761 & 960; Audit Report Number DD-07-04
Citation: FEMA-1379-DR-TX, City of Houston, Audit Report Number DD-07-04, Project Worksheets (PW) 19, 55, 759, 761 and 960
References: Documentation, Equipment Rates, Labor Costs, Project Management Costs
Summary: Due to flooding from Tropical Storm Allison in June of 2001, the Applicant performed debris removal operations, emergency protective measures, and search and rescue operations. Following an Office of Inspector General’s (OIG) audit report, FEMA deobligated $2,500,302 based on the OIG’s findings and recommendations. The Applicant submitted its first appeal to the State’s Division of Emergency Management (State) on July 20, 2007, requesting the reobligation of $2,497,310. The Appeal was forwarded to FEMA on September 27, 2007. FEMA’s Regional Administrator denied the first appeal on November 1, 2007, stating that the Applicant did not provide sufficient documentation to evaluate the appeal. The Applicant submitted its second appeal to the State on January 14, 2008. The Applicant’s second appeal requests $2,419,141 arguing that the Region made incorrect decisions to deobligate funding based on the OIG audit.
Issue: Did the Applicant provide sufficient documentation to support funding the questioned costs?
Finding: The Applicant provided sufficient documentation to support reimbursement of $1,320,007 of the force account labor and equipment costs and contract costs. However, the Applicant did not provide sufficient documentation to support the eligibility of the remaining $1,099,134.
Rationale: Sections 324, 403, 406, 407 and 423 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act: 44 CFR §§13.36, Procurement, 206.224, Debris Removal 206.225, Emergency Work 206.226, Restoration of damaged facilities and 206.228 Allowable costs; Response and Recovery Policy 9525.6, Project Supervision and Management Costs of Subgrantees; and Response and Recovery Policy 9525.7, Labor Costs-Emergency Work.