HMA Table 36

Total Award Amount	Obligation Time Frame
Recipient Management Costs for Subaward
Greater than $1 million	Recipient management costs for subawards greater than $1 million will follow FEMA’s strategic funds management process. The annual obligation cycle and will follow the strategic funds management procedures.
Greater than $1 million	FEMA, the recipient and the subrecipient will review the budget and work schedule to ensure the project supports incremental obligation. FEMA will execute obligations in increments, based on the project meeting an established project milestone schedule, until the project is completed.
$500,000–$1 million	Recipient management costs for subawards between $500,000 and $1 million will be obligated by FEMA in increments sufficient to cover recipient and subrecipient needs for no more than one year unless contractual agreements require additional assistance.
$500,000–$1 million	The increment amount will be determined based upon the applicant’s budget and schedule. The number of increments will be determined by the length of period of performance (one increment per year).
Less than $500,000	Recipient management costs for subawards under $500,000 can be fully obligated at the time of award except for closeout withholding.
Subrecipient Management Costs
Greater than $1 million	Subrecipient subawards greater than $1 million (or management costs equal to or more than $50,000) will follow FEMA’s strategic funds management procedures.
(management costs equal to or more than $50,000)	FEMA, the recipient and the subrecipient will review the budget and work schedule to ensure the project supports incremental obligation. FEMA will execute obligations in increments, based on the project meeting an established project milestone schedule, until the project is completed.
$500,000–$1,00,000 (management costs between $25,000 and $50,000)	Subrecipient subawards between $500,000 and $1 million (or management costs between $25,000 and $50,000) will be obligated by FEMA in increments sufficient to cover recipient and subrecipient needs for no more than one year unless contractual agreements require additional assistance.
	Amount of increments are determined based on applicant’s management costs budget and schedule.
Less than $500,000	Subrecipient subawards under $500,000 (or management costs under $25,000) can be fully obligated by FEMA at the time of award.
(management costs under $25,000)