Article 18: Public Assistance Program Regulations

(Category: costs-eligilbilty)

Article Summary

Regulations are formal Federal rules that carry the force and effect of law, implementing broad statutory mandates based on a Federal agency's interpretation of those laws. FEMA, along with any state, local, or nonprofit entity receiving public funds, must strictly comply with all applicable Federal Regulations.

FEMA codifies and publishes its specific Public Assistance Program rules across key sections of Title 44 of the Code of Federal Regulations (CFR):

• Part 206 Subpart G: Governs Public Assistance Project Administration.
• Part 206 Subpart H: Sets forth the rules and criteria for Public Assistance Eligibility.
• Part 206 Subpart I: Outlines Public Assistance Insurance Requirements.
• Part 207: Governs the implementation and limits of Management Costs.

In addition to FEMA’s specific rules, the Office of Management and Budget (OMB) establishes overarching, government-wide compliance requirements under 2 CFR Part 200, known as the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. This "Super Circular" regulates how federal grants must be administratively monitored, how costs must be calculated for reasonableness, and how financial audits must be executed.

Five Key Takeaways for CTA FEMA Compliance

1. Enforce Cross-Agency Regulatory Compliance: Ensure your project teams are fully compliant with both FEMA-specific rules in 44 CFR and overarching OMB financial guidelines found in 2 CFR Part 200.
2. Audit Against Project Administration Standards: Review all project lifecycle workflows against 44 CFR Part 206 Subpart G to verify that project worksheets are formulated, tracked, and modified in accordance with federal administrative rules.
3. Validate Project Eligibility Upfront: Cross-reference every proposed scope of work against the strict eligibility criteria in 44 CFR Part 206 Subpart H before submitting funding packages to minimize the risk of a future clawback.
4. Maintain Compliance with 2 CFR Part 200 Cost Principles: Align your agency's standard procurement, accounting controls, and documentation trails with 2 CFR Part 200 to prove that all disaster expenditures are reasonable, allocable, and necessary.
5. Reconcile Project Files for Uniform Closeout: Prepare all project financial files to withstand a federal audit by organizing line-item expenses, receipts, and contract awards to match the uniform closeout metrics established by the OMB.

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