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. In contrast; 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.The Applicant has not provided the necessary documentation to support its DAC claim because the costs cannot be accounted for directly to specific projects.

HeadnotesStafford 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. In contrast; 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.The Applicant has not provided the necessary documentation to support its DAC claim because the costs cannot be accounted for directly to specific projects.