Summary Paragraph In April and May, 2011, severe storms caused flooding, which led to slope failure of the embankment along Big Indian Road (Facility) in Washington Township (Applicant). FEMA prepared Project Worksheet (PW) 1047 obligating funding in the amount of $120,881.70 for repair of the Facility. The scope of work (SOW) in the PW included excavation and compaction of the soil to stabilize the slope prior to repairing the Facility. Subsequently, geotechnical testing was performed on the Facility and based on the results, the Applicant repaired the Facility through an alternate method, which placed a series of drilled piers along the roadway to stabilize the embankment. The cost of the project cost $43,679.57 more than originally obligated. The Ohio Emergency Management Agency (Grantee) submitted the project for approval of the cost overrun at closeout. FEMA determined the Applicant changed the SOW without notifying the Grantee or FEMA prior to construction and considered the alternate repair method to be an improved project. FEMA capped the costs to the original funding amount. The Applicant appealed FEMA’s determination and argued the alternate repair method returned the Facility to its predisaster function and capacity. The Regional Administrator (RA) denied the appeal, finding that, pursuant to 44 C.F.R. § 13.30, the Applicant failed to obtain prior written approval to change the restoration design. The Applicant appeals the RA’s decision, arguing that the completed project stayed within the limits of the original PW and the repair was the only viable solution. FEMA may approve an improved project, but federal funding is capped at the approved estimate of eligible costs. The repair method utilized by the Applicant constitutes an improved project, and the increased costs are not eligible for funding. Authorities and Second Appeals Stafford Act § 406. 44 C.F.R. §§ 13.30, 206.203(d)(1), 206.204(e), 206.205(b), and 206.226. PA Guide at 79, 101, 110-11, 139-140 (Jun. 2007). Headnotes Pursuant to the Stafford Act § 406 and 44 C.F.R. § 206.226, FEMA may fund the cost of repairing a facility on the basis of the design of the facility as it existed immediately prior to the disaster. Per 44 C.F.R. § 206.203(d)(1), FEMA may also reimburse costs when an applicant makes improvements, but still restores the predisaster function of a damaged facility; Federal funding is capped at the approved estimate of eligible costs. The repair method used by the Applicant went beyond repairing the Facility to its predisaster design. It is an improved project and, as such, was capped at the approved estimate of eligible costs. Pursuant to 44 C.F.R. §§ 13.30, 206.204(e) and 206.205(b), and the PA Guide, applicants must obtain approval from FEMA prior to incurring costs in excess of the approved amount. Where the SOW has not changed, the RA has discretion in approving such costs. The Applicant submitted the cost overrun at closeout after changing the SOW and completing construction. The RA appropriately denied the costs.