Allowable Costs & Reasonable Costs

Allowable & Reasonable Costs

HEADNOTES

Not all costs incurred as a result of the incident are eligible. Costs must be necessary and reasonable to accomplish the work. A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstance prevailing at the time the decision was made to incur the cost. It is also the Applicant’s responsibility to substantiate its claim as eligible. If the Applicant does not provide sufficient documentation to support its claim as eligible, FEMA cannot provide PA funding for the work. The Applicant has not documented that the costs for the UTV and Sprayer are reasonable and necessary.

CONCLUSION

FEMA finds the Applicant has not documented that the costs for the UTV and Sprayer are reasonable and necessary. Therefore, FEMA denies the appeal.

AUTHORITIES

2 C.F.R. §§ 200.403, 200.404. PAPPG, at 21, 133. FP 104-21-0003, at 3-4. Sonoma Cty., FEMA-4344-DR-CA, at 3.

Allowable Costs & Reasonable Costs