Summary Paragraph Hurricane Wilma struck Broward County, Florida in October 2005. As a result, the Applicant utilized contract labor to remove disaster-related debris, including stumps, on its school grounds and public rights-of-way. FEMA prepared Project Worksheet (PW) 6235 to document costs associated with the debris removal. In October 2010, the DHS Office of Inspector General (OIG) questioned $1,924,305.00 in costs claimed in PW 6235 due to inadequate source documentation. The Applicant subsequently provided the necessary documentation. At closeout (Version 3 of PW 6235), FEMA obligated $1,986,381.00 in eligible costs, but disallowed $735,440.00 for grinding stumps less than 24 inches in diameter. FEMA then reopened the PW and deobligated an additional $196,315.00 in costs associated with grinding stumps 24 inches or greater, documented in PW 6235 Version 4. The Applicant appealed eligibility determinations in both Versions 3 and 4 of PW 6235 in October 2012—one year after Version 3 was obligated and almost five months after Version 4 was obligated. The Region IV Regional Administrator denied the first appeal, as it related to Version 3, as untimely. In addition, she denied the appeal, as it related to Version 4, finding the stump removal and grinding of stumps 24 inches or greater ineligible because it did not reduce or eliminate an immediate threat to life, public health and safety, or property, pursuant to 44 C.F.R. § 206.224. In its second appeal, the Applicant asserts that FEMA is prohibited from recovering grant assistance deobligated in Version 4 pursuant to Stafford Act § 705(c). The Applicant also argues that the work is eligible under 44 C.F.R. § 206.224. Authorities and Second Appeals Stafford Act §§ 423 and 705(c). 44 C.F.R. § 206.206(c). FP 205-081-2, Stafford Act Section 705, Disaster Grant Closeout Procedures, at 2. Headnotes According to Stafford Act § 423 and 44 C.F.R. § 206.206(c)(1), an applicant has 60 days from receipt of notice of an eligibility determination to appeal the determination. The Applicant’s first appeal of Versions 3 and 4 of PW 6235 was untimely regarding both versions. As such, the Applicant exhausted its appeal rights prior to second appeal. Pursuant to Stafford Act § 705(c), as interpreted by FP 205-081-2, Stafford Act Section 705, Disaster Grant Closeout Procedures, FEMA is prohibited from recovering funds deobligated in PWs if: (1) payment was authorized in an approved agreement specifying the costs, (2) the costs were reasonable, and (3) the purpose of the grant was accomplished, even if FEMA later determines the costs were obligated contra to FEMA law, regulation, or policy. The prohibition does not apply where appeal rights are exhausted and FEMA has made a final administrative decision. The Applicant’s appeal rights regarding Version 4 of PW 6235 were exhausted prior to second appeal. Consequently, Stafford Act § 705(c) does not apply.