The PA Management Costs Interim Policy implements Section 1215 of the DRRA and provides greater flexibility to state, tribal, territorial and local governments to manage the PA Program. FEMA will evaluate this Interim Policy as it is implemented and will update the management costs policy in the Public Assistance Program and Policy Guide.
The Public Assistance Management Costs Fact Sheet was updated on February 11, 2019 with the release of the Public Assistance Management Costs SOP.
In a clarification memorandum dated December 19, 2018, FEMA required Recipients and Subrecipients to notify FEMA of their management cost option no later than February 12, 2019. Due to delays and complications caused by the recent lapse in appropriations and associated partial government shutdown, FEMA is extending this deadline to March 15, 2019. The SOP and an updated fact sheet both reflect this new deadline for notifying FEMA of the management cost option selected.
This Standard Operating Procedures (SOP) document defines the procedures for documenting and processing management cost claims under the Public Assistance Management Costs Interim Policy, published on November 14, 2018. The procedural information outlined in this document is intended to ensure consistent implementation of the Interim Policy and effective tracking and verification of management cost claims by Recipients and Subrecipients.
Section 324 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as
amended (Stafford Act) authorizes the Federal Emergency Management Agency (FEMA) to
provide funding under the Hazard Mitigation Grant Program (HMGP) for management costs
incurred in the administration of HMGP. The Disaster Recovery Reform Act (DRRA) amends
Section 324 of the Stafford Act and requires FEMA to provide HMGP funding for management
costs at the following percentage rates: “A grantee [recipient] under section 404 may be
reimbursed not more than 15 percent of the total amount of the grant award under such
section of which not more than 10 percent may be used by the grantee and 5 percent by the
subgrantee [subrecipient] for such costs.”