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Second Appeal Summary
PA ID# 000-92007; North Dakota Division of Emergency Management
DSR ID# 00552; State management costs
Citation: Appeal Analysis; Second Appeal; North Dakota Division of Emergency Management; FEMA-1118-DR-ND, PA 000-92007
Cross-Reference: DSR 00552; State management costs; State Inspectors, Overtime Costs; Administrative Allowance
Facts: Following the summer floods of 1996, in North Dakota, FEMA prepared DSR 00552 to cover State management costs. The DSR initially included overtime costs for State inspectors. FEMA subsequently reduced the DSR amount by excluding the overtime costs for State inspectors because there was concern that there could be a possible duplication of payment, since the grantee's (State) administrative allowance covers the overtime expenses. On September 26, 1996, the State forwarded its first appeal, claiming that State inspectors were not State employees and were hired as consultants at $20 per hour for the number of hours worked. The State also argued that a consulting firm would have charged twice as much and FEMA would have allowed it. The Region denied the appeal on February 22, 1997, based on Sections 406(b)(2) and (f)(2) of the Stafford Act, and reiterated the fact that overtime costs were covered by the administrative allowance. The State submitted its second appeal on April 9, 1997, and submitted no new information to substantiate its disagreement with the first appeal.
Issue: Are overtime costs covered by the grantee's administrative Allowance?
Rationale: Overtime, travel and per diem costs are covered by the grantee's administrative allowance.