o FDEM requested an increase in management costs for four active disaster declarations. When FEMA informed FDEM that the management costs could not be increased above the current 4.89 percent provided in 44 C.F.R. § 207.5 (b)(4)(ii), FDEM submitted an appeal.
• Reason for Denial
o The 4.89 percent HMGP lock-in rate for management costs is fixed by 44 C.F.R. § 207.5 (b)(4)(ii) and cannot be changed except through the periodic review process set forth in 44 C.F.R. § 207.10; The CFO does not have the authority to change the lock-in rate.
o 44 C.F.R. § 207.5 (b)(4)(ii); 44 C.F.R. § 207.5(e); 44 CFR 206.440 – Appeals
o FDEM reiterated previous arguments including rationale and justification for increased management costs under the aforementioned declarations, and that the periodic review of management cost rates provided for in 44 C.F.R. § 207.10 indicates the inherent need for re-assessment to ensure funding adequacy for program implementation success.
• FEMA Findings
o FEMA Headquarters upheld the decision to deny the 1st Appeal and the request for increase of management cost funding.
o Under the current regulation, the management cost rate for the HMGP cannot be increased above 4.89 percent.
o 44 C.F.R. § 207.5 (b)(4)(ii); 44 C.F.R. § 207.5(e); 44 C.F.R. § 207.10; 44 CFR 206.440 – Appeals