Administrative costs related to managing the PA Program and PA projects; if tracked; charged; and accounted for directly to a specific eligible project; are eligible as DAC.PM activities; such as procurement; document review; and construction oversight; are eligible provided the activities are tracked and directly related to a specific; eligible project. Engineering and design services and construction inspection are also eligible provided the services are necessary. To be eligible; all costs must be adequately documented and reasonable.The Applicant provided inconsistent descriptions of its contractor services and did not separately identify or distinguish DAC from engineering and design; PM; or insurance claim support costs.FEMA reduces eligible costs by actual or anticipated insurance proceeds and requires applicants to make reasonable efforts to recover insurance proceeds they are entitled to receive.The Applicant did not explain why repair expenses were not covered by insurance or demonstrate that it made reasonable efforts to receive proceeds to which it was entitled.

HeadnotesAdministrative costs related to managing the PA Program and PA projects; if tracked; charged; and accounted for directly to a specific eligible project; are eligible as DAC.PM activities; such as procurement; document review; and construction oversight; are eligible provided the activities are tracked and directly related to a specific; eligible project. Engineering and design services and construction inspection are also eligible provided the services are necessary. To be eligible; all costs must be adequately documented and reasonable.The Applicant provided inconsistent descriptions of its contractor’s services and did not separately identify or distinguish DAC from engineering and design; PM; or insurance claim support costs.FEMA reduces eligible costs by actual or anticipated insurance proceeds and requires applicants to make reasonable efforts to recover insurance proceeds they are entitled to receive.The Applicant did not explain why repair expenses were not covered by insurance or demonstrate that it made reasonable efforts to receive proceeds to which it was entitled.