Allowable Costs & Reasonable Costs, Increased Operating Costs, Legal Responsibility

Legal Responsibility

HEADNOTES

FEMA cannot provide PA funding for revenue lost due to an incident, such as if a hospital sustains damage that reduces pre-existing capacity. The Applicant’s loss of revenue and unbudgeted increased operating expenses are not allowable costs. Rather, they are increased operating costs ineligible for PA funding. For PNPs, operating costs are generally not eligible even if the services are emergency services, unless the PNP performs an emergency service at the request of and certified by the legally responsible government entity. The Applicant has not demonstrated it was legally responsible to provide meal and transportation services.

CONCLUSION

FEMA finds that the Applicant’s request for reimbursement of lost revenue is not eligible. Furthermore, the Applicant has not demonstrated it was legally responsible to provide emergency services. Therefore, the appeal is denied.

AUTHORITIES

Stafford Act § 403(a)(3). 44 C.F.R. § 206.225(a); 206.223(a)(3). PAPPG, at 21, 41-42, 60-61. FP 104-009-18, at 1; FP 104-010-03, at 3; Fact Sheet, Private Nonprofit Organizations, at 2; FAQs, Non-Congregate Sheltering, at 1-2. DeSales Media Group Inc., FEMA-4480-DR-NY, at 1, 4; Divine Providence Inc., FEMA-4497-DR-KY, at 3; The Center for Housing Solutions, Inc., FEMA-4587-DR-OK, at 2.

44 C.F.R. § 206.225(a); 206.223(a)(3)
Allowable Costs & Reasonable Costs, Increased Operating Costs, Legal Responsibility