Citation: FEMA-1603-DR-LA, N’R Peace, Inc., Document Restoration, Project Worksheet (PW) 1676
Cross-Reference: Work Eligibility
Summary: Hurricane Katrina resulted in flooding of the HIV medical care clinics operated by N’R Peace, Inc. (Applicant) and destruction of Applicant’s case management files. The files, which contained patient medical data necessary for the operation of the organization, were completely destroyed. In December 2005, FEMA obligated funds, totaling $105,600, to recreate the records in PW 1676. The Applicant requested additional funding. FEMA determined that the Applicant’s request and the original obligated amount were ineligible because there was no data in the medical records that could be salvaged or stabilized. In the first appeal, the Applicant asserted that FEMA did not notify it that the work and labor costs associated with the completed work were ineligible until six years after the work was completed. The Applicant noted that it worked closely with FEMA during the restoration process and submitted documents requested by FEMA. Accordingly, the Applicant requested $385,000 in FEMA funding for force account labor, purchased items, and items yet to be purchased. The Regional Administrator granted the appeal with regard to the materials and supplies that the Applicant lost relative to the medial records but denied it with regard to the labor costs associated with recreating the medical records. In the second appeal, the Applicant contends that it has not received any of the $385,000 that it requested in the first appeal. This amount includes the $105,600 in force account labor costs that FEMA de-obligated, an additional $105,000 for force account labor associated with restoring the medical files, and costs related to materials and supplies. Moreover, the Applicant asserts that the force account labor associated with the recreation of its medical records is eligible for FEMA funding. FEMA obligated funding for supplies and materials in PW 1733.
Issues: 1. Are labor costs associated with the restoring of data in patient records eligible for FEMA funding?
2. May FEMA de-obligate funds after the Applicant has completed the work that was approved by FEMA and for which the funds were initially obligated?
Findings: 1. No.
Rationale: 44 CFR §206.226, Restoration of damaged facilities, Response and Recovery Policy (RRP) 9524.6, Collections and Individual Objects, dated August 17, 1999; 44 CFR 13.22(b), Allowable costs, OMB Circular A-87, Attachment A (Section C), dated May 10, 2004.