Stafford Act § 324 provides for establishment of management cost rates. Management costs include any indirect cost, any administrative expense, and any other expense not directly chargeable to a specific project under a major disaster, emergency, or disaster preparedness or mitigation activity or measure. According to DAP 9525.9, indirect costs are incurred by the grantee or applicant for a common or joint purpose benefitting more than one cost objective. DAC can be tracked, charged, and accounted for directly to a specific project, such as staff time to complete field inspections and preparation of a PW. Such costs cannot be assumed eligible if not tracked and documented in a manner that enables FEMA to determine if they are reasonable, necessary, and appropriate. TheApplicant has not provided the necessary documentation to support its DAC claim because the costs cannot be accounted for directly to specific projects.

The Applicant’s documentation to support its DAC claim does not include costs that are accounted for directly to PW 11482, but rather are indirect costs which are ineligible for reimbursement as DAC. As such, the appeal is denied.

Stafford Act § 324. DAP 9525.9, at 2. Cent. Bradford Progress Auth., FEMA-4030-DR-PA, at 4. Univ. of Tex. Med. Branch, FEMA-1791-DR-TX, at 9-10.