This is in response to your letter dated January 25, 2017, which transmitted the referenced second appeals on behalf of the University of Texas Medical Branch (Applicant). The Applicant is appealing the Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of funding in the amount of $34,600.16 for PW 1001, $25,893.38 for PW 10638, and $7,375.21 for PW 12128 in direct administrative costs (DAC) for labor and travel expenses. As explained in the enclosed analysis, I have determined that the Applicant has not demonstrated that it tracked costs for eligible repair work separately from the cost of improvements, nor has it substantiated the general eligibility of DAC for all claimed contractor labor costs. In addition, the Applicant’s claimed travel expenses constitute indirect costs because those costs were prorated across multiple PWs, and thus are ineligible for reimbursement as DAC. Accordingly, I am denying the appeals and directing FEMA Region VI to execute this determination subject to Section 705(c) of the Stafford Act, as implemented by Recovery Policy, FP-205-081-2, Stafford Act Section 705, Disaster Grant Closeout Procedures. Please inform the Applicant of my decision. This determination is the final decision on this matter pursuant to 44 C.F.R. § 206.206, Appeals.