State management costs
|Applicant||North Dakota Division of Emergency Management|
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.
August 6, 1997
Mr. Raymond J. Staiger
Acting Governor's Authorized Representative
P.O. Box 5511
Bismarck, North Dakota 58506-5511
Dear Mr. Staiger:
This is in response to your letter dated April 9, 1997, to the Federal Emergency Management Agency. With that letter, you forwarded a second appeal of DSR 00552 on behalf of the North Dakota Division of Emergency Management (NDDEM) to our office requesting FEMA to pay the overtime expenses for the State contractors who worked on the Federal-State-Local damage survey report (DSR) teams.
The issue in this appeal is whether the cost of overtime the NDDEM paid to contract workers who participated on damage survey inspection teams is eligible for direct reimbursement from FEMA or is included in the grantee's statutory administrative allowance. In its February 22, 1997, response to the first appeal, our regional office provided a thorough explanation of why the extraordinary costs associated with preparing DSRs are included in the statutory administrative allowance provided for in sections 406(b)(2) and (f)(2) of the Stafford Act. We have reviewed the region's response and have determined that they correctly interpreted the statute. Therefore, the second appeal is denied.
Please inform the applicant of my determination. The applicant may submit a third appeal to the Director of FEMA, through your office and the Regional Director, in accordance with 44 CFR 206.206. A third appeal must be submitted within 60 days after receipt of this determination.
Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate