Scope of Work - Timeliness

Scope of Work

HEADNOTES

Pursuant to Stafford Act § 423 and 44 C.F.R. § 206.206(c), an applicant has 60 days from receipt of notice to appeal an eligibility determination. The Applicant submitted its first appeal past the 60-day timeframe and accordingly, it was untimely. 2 C.F.R. §§ 215.0(b)(2) and 215.21 requires non-profit recipients and subrecipients of federal funds to adequately safeguard those funds received and assure they are used solely for authorized purposes.Costs expended must be allocable to the grant’s objectives and incurred specifically for the grant. The Applicant’s use of federal funds to pay past-due taxes and issue a loan to an employee were not authorized purposes. Per 2 C.F.R. §§ 215.61 and 215.62, if FEMA determines an applicant materially fails to comply with the terms or conditions of an award, it may terminate the award to disallow all or part of the cost of the activity. The Applicant materially failed to comply with the terms of the award and FEMA appropriately deobligated those costs. Pursuant to 2 C.F.R. §215.2(x) and 215.24, program The Applicant loaned federal award funds to its employee and charged 6 percent interest. As such, the interest will be deducted from the eligible project costs.

CONCLUSION

: FEMA obligated Public Assistance (PA) funds for the purpose of repairing the Milwaukee Immediate Care Center (Applicant/MICC), but the Applicant instead used a portion of the funds for purposes unrelated to the repair. Additionally, the Applicant did not submit its first appeal within the regulatory 60-day timeframe and accordingly exhausted its appeal rights. As such, the appeal is denied.

AUTHORITIES

Stafford Act § 423. 2 C.F.R. §§ 215.0(b)(2), 215.2, 215.21, 215.24, 215.61, 215.62. 44 C.F.R. § 206.206(c). PA Guide, at 40. Broward County School Board of Florida, FEMA-1609-DR-FL, at 2 (Sep. 4, 2014).

44 C.F.R. § 206.206(c)
Scope of Work - Timeliness