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Audit Report Number W-26-01
Appeal Brief
Appeal Letter
Citation: FEMA-1008-DR-CA; California Seismic Safety Commission, Audit Report Number W-26-01; Damage Survey Reports (DSRs) 68899, 68925, 96949, 15075, 91876, 11548
Cross-reference: Office of the Inspector General Audit W-26-01
Summary: As a result of the 1994 Northridge Earthquake, the Federal Emergency Management Agency (FEMA) prepared DSR 68899 on
March 28, 1994, for $716,290 to fund a study by the California Seismic Safety Commission (CSSC) to review and analyze effects of the Northridge earthquake, the policy implications for seismic structural safety and land use planning, and the need for changes in seismic building standards. FEMA approved DSR 68925 to amend the scope of work on April 6, 1994 with no additional funding. FEMA increased the funding by $172,167 to a total of $888,457 with DSR 96949 in response to an approved first appeal on November 8, 1996. On May 14, 1998, FEMA prepared the CSSCs large project closeout and an additional $142,900 was funded in DSR 15075 for eligible supplemental expenses. Based on its audit report dated July 23, 2001, the Office of the Inspector General (OIG) recommended that $260,551 be disallowed due to unrelated project costs and unsupported force account labor and reproduction costs. FEMA agreed with OIG recommendations and de-obligated $260,551 on August 17, 2001, with DSR 91876. CSSC submitted its first appeal on August 27, 2001, in response to the audit report. The FEMA Region IX Acting Regional Director partially approved the first appeal by approving $38,000 for printing costs in DSR 11548. The Acting Regional Director denied $216,184 claimed for donated resources and $6,367 for force account labor and reproduction costs. The Governors Office of Emergency Services supports CSSCs second appeal dated November 8, 2002, which requests credit for the donated services for the Commissioners time to offset the non-federal cost share.
Issues: Can the Commissioners time be applied to the non-federal cost share?
Findings: No. Credit for donated resources applies to Emergency Work only.
Rationale: Memorandum, August 25, 1993, Crediting Volunteer Efforts for Essential Assistance; Memorandum, October 19, 1994, Volunteer Credit Policy Request, Iowa Emergency Management Division, FEMA-996-DR-IA; Response & Recovery Policy 9525.2, Donated Resources
Appeal Brief
| Desastre | FEMA-1008-DR |
| Applicant | California Seismic Safety Commission |
| Appeal Type | Second |
| PA ID# | 000-92042 |
| PW ID# | 68899, 68925, 96949, 15075, 91876, 11548 |
| Date Signed | 2003-09-25T04:00:00 |
March 28, 1994, for $716,290 to fund a study by the California Seismic Safety Commission (CSSC) to review and analyze effects of the Northridge earthquake, the policy implications for seismic structural safety and land use planning, and the need for changes in seismic building standards. FEMA approved DSR 68925 to amend the scope of work on April 6, 1994 with no additional funding. FEMA increased the funding by $172,167 to a total of $888,457 with DSR 96949 in response to an approved first appeal on November 8, 1996. On May 14, 1998, FEMA prepared the CSSCs large project closeout and an additional $142,900 was funded in DSR 15075 for eligible supplemental expenses. Based on its audit report dated July 23, 2001, the Office of the Inspector General (OIG) recommended that $260,551 be disallowed due to unrelated project costs and unsupported force account labor and reproduction costs. FEMA agreed with OIG recommendations and de-obligated $260,551 on August 17, 2001, with DSR 91876. CSSC submitted its first appeal on August 27, 2001, in response to the audit report. The FEMA Region IX Acting Regional Director partially approved the first appeal by approving $38,000 for printing costs in DSR 11548. The Acting Regional Director denied $216,184 claimed for donated resources and $6,367 for force account labor and reproduction costs. The Governors Office of Emergency Services supports CSSCs second appeal dated November 8, 2002, which requests credit for the donated services for the Commissioners time to offset the non-federal cost share.
Appeal Letter
September 25, 2003
Mr. Dallas Jones
Governors Authorized Representative
Governors Office of Emergency Services
P.O. B ox 419047
Rancho Cordova, CA 95741-9047
Re: Second Appeal California Seismic Safety Commission, PA ID 000-92042, Audit Report Number W-26-01, FEMA-1008-DR-CA, Damage Survey Reports (DSRs) 68899, 68925, 96949, 15075, 91876, 11548
Dear Mr. Jones:
This letter is in response to a January 8, 2003, letter forwarding the referenced second appeal on behalf of the California Seismic Safety Commission (CSSC). CSSC has requested that the Federal Emergency Management Agency (FEMA) reconsider its denial of the credit of $216,184 for the donated services for the Commissioners time to offset the non-federal cost share. CSSC is also appealing $3,800 that it claims was erroneously deducted twice in DSR 11548 dated August 19, 2002. The total amount in question is $219,984.
As a result of the 1994 Northridge Earthquake, FEMA prepared DSR 68899 on
March 28, 1994, for $716,290 to fund a study by the California Seismic Safety Commission (CSSC) to review and analyze effects of the Northridge earthquake, the policy implications for seismic structural safety and land use planning, and the need for changes in seismic building standards. FEMA approved DSR 68925 to amend the scope of work on April 6, 1994 with no additional funding. FEMA increased the funding by $172,167, to a total of $888,457, with DSR 96949 in response to an approved first appeal on November 8, 1996. On May 14, 1998, FEMA prepared the CSSCs large project closeout and an additional $142,900 was funded in DSR 15075 for eligible supplemental expenses. Based on its audit report dated July 23, 2001, the Office of the Inspector General (OIG) recommended that $260,551 be disallowed due to unrelated project costs and unsupported force account labor and reproduction costs. FEMA agreed with OIG recommendations and de-obligated $260,551 on August 17, 2001.
CSSC submitted its first appeal on August 27, 2001, in response to the de-obligation. The FEMA Region IX Acting Regional Director partially approved the first appeal on August 19, 2002, by approving $38,000 for printing costs. The Regional Director denied $216,184 claimed for donated resources and $6,367 for force account labor and reproduction costs.
CSSC submitted a second appeal to OES on November 8, 2002, wherein it requested that the $216,184 for the Commissioners time be credited as a donated resource to offset the non-federal cost share. Also, it requested that the non-federal cost share ($3,800) from DSR 11548 be reimbursed because it claims it had already been deducted from the project.
In addition to its second appeal package, CSSC submitted additional information in a letter dated December 18, 2002. In its letter, CSSC stated that FEMAs 1999 Response and Recovery Policy Number 9525.2 titled Donated Services does not apply to its Public Assistance Grant, which was submitted on March 26, 1994. CSSC also stated that Policy 9525.2 superceded a Memorandum dated August 23, 1993, to Federal Coordinating Officers from Laurence Zensinger, Chief, Public Assistance Division, titled Crediting Volunteer Efforts for Essential Assistance. CSSC claimed that the intent of the 1993 memo was to ensure that the maximum Federal share of any DSR would not exceed the applicants actual out-of-pocket expenses and that CSSC met this intent.
Response and Recovery Policy 9525.2, Donated Resources, is consistent with our past practice of giving applicants credit for donated resources for emergency work only. The August 23, 1993, memorandum from the Public Assistance Division Chief in Washington, DC and the October 19, 1994, memorandum from the Infrastructure Support Division Director address our policy on the use of volunteer credit. The work performed by CSSC was classified as Category G, not categories A & B emergency work. Therefore, the request to use donated resources to offset part of the non-Federal cost share is denied.
Please inform the County of my decision. My determination constitutes the final decision on this matter as set forth in 44 CFR §206.206.
Sincerely,
/S/
Laurence W. Zensinger
Acting Director, Recovery Division
Emergency Preparedness and Response Directorate
Department of Homeland Security
cc: Jeff Griffin
Regional Director
FEMA, Region IX
Mr. Dallas Jones
Governors Authorized Representative
Governors Office of Emergency Services
P.O. B ox 419047
Rancho Cordova, CA 95741-9047
Re: Second Appeal California Seismic Safety Commission, PA ID 000-92042, Audit Report Number W-26-01, FEMA-1008-DR-CA, Damage Survey Reports (DSRs) 68899, 68925, 96949, 15075, 91876, 11548
Dear Mr. Jones:
This letter is in response to a January 8, 2003, letter forwarding the referenced second appeal on behalf of the California Seismic Safety Commission (CSSC). CSSC has requested that the Federal Emergency Management Agency (FEMA) reconsider its denial of the credit of $216,184 for the donated services for the Commissioners time to offset the non-federal cost share. CSSC is also appealing $3,800 that it claims was erroneously deducted twice in DSR 11548 dated August 19, 2002. The total amount in question is $219,984.
As a result of the 1994 Northridge Earthquake, FEMA prepared DSR 68899 on
March 28, 1994, for $716,290 to fund a study by the California Seismic Safety Commission (CSSC) to review and analyze effects of the Northridge earthquake, the policy implications for seismic structural safety and land use planning, and the need for changes in seismic building standards. FEMA approved DSR 68925 to amend the scope of work on April 6, 1994 with no additional funding. FEMA increased the funding by $172,167, to a total of $888,457, with DSR 96949 in response to an approved first appeal on November 8, 1996. On May 14, 1998, FEMA prepared the CSSCs large project closeout and an additional $142,900 was funded in DSR 15075 for eligible supplemental expenses. Based on its audit report dated July 23, 2001, the Office of the Inspector General (OIG) recommended that $260,551 be disallowed due to unrelated project costs and unsupported force account labor and reproduction costs. FEMA agreed with OIG recommendations and de-obligated $260,551 on August 17, 2001.
CSSC submitted its first appeal on August 27, 2001, in response to the de-obligation. The FEMA Region IX Acting Regional Director partially approved the first appeal on August 19, 2002, by approving $38,000 for printing costs. The Regional Director denied $216,184 claimed for donated resources and $6,367 for force account labor and reproduction costs.
CSSC submitted a second appeal to OES on November 8, 2002, wherein it requested that the $216,184 for the Commissioners time be credited as a donated resource to offset the non-federal cost share. Also, it requested that the non-federal cost share ($3,800) from DSR 11548 be reimbursed because it claims it had already been deducted from the project.
In addition to its second appeal package, CSSC submitted additional information in a letter dated December 18, 2002. In its letter, CSSC stated that FEMAs 1999 Response and Recovery Policy Number 9525.2 titled Donated Services does not apply to its Public Assistance Grant, which was submitted on March 26, 1994. CSSC also stated that Policy 9525.2 superceded a Memorandum dated August 23, 1993, to Federal Coordinating Officers from Laurence Zensinger, Chief, Public Assistance Division, titled Crediting Volunteer Efforts for Essential Assistance. CSSC claimed that the intent of the 1993 memo was to ensure that the maximum Federal share of any DSR would not exceed the applicants actual out-of-pocket expenses and that CSSC met this intent.
Response and Recovery Policy 9525.2, Donated Resources, is consistent with our past practice of giving applicants credit for donated resources for emergency work only. The August 23, 1993, memorandum from the Public Assistance Division Chief in Washington, DC and the October 19, 1994, memorandum from the Infrastructure Support Division Director address our policy on the use of volunteer credit. The work performed by CSSC was classified as Category G, not categories A & B emergency work. Therefore, the request to use donated resources to offset part of the non-Federal cost share is denied.
Please inform the County of my decision. My determination constitutes the final decision on this matter as set forth in 44 CFR §206.206.
Sincerely,
/S/
Laurence W. Zensinger
Acting Director, Recovery Division
Emergency Preparedness and Response Directorate
Department of Homeland Security
cc: Jeff Griffin
Regional Director
FEMA, Region IX