44 C.F.R. § 206.203(d)(1), provides that when applicants make improvements while restoring a facility to predisaster function and capacity, FEMA is limited to funding the project based on the Federal share of the approved cost estimate. In project execution, the Applicant incurred multiple expenses, some of which were potentially eligible and others that were beyond the authorized SOW. Upon project completion, the Applicant presented these costs for additional funding. Unable to discern the eligible from ineligible expenses, FEMA properly classified the PW 3818 as an “improved project” and denied the Applicant’s request for additional funding for actual expenses.

: The Applicant incurred costs for eligible and ineligible work, comingled them and then could not distinguish the eligibility for each cost when requesting funding for actual cost overruns. Consequently, FEMA properly classified PW 3818 as an improved project consistent with 44 C.F.R. § 206.203(d)(1) which limits funding to the approved cost estimate. Accordingly, the Applicant’s appeal for additional funding for cost overruns in actual expenses is denied.

Stafford Act § 406, 42 U.S.C § 5176. 44 C.F.R. §§ 206.203(d)(1), 206.206. 2 C.F.R. § 225 App. A § C.3.a PA Guide, at 83 (1999).