FEMA cannot provide assistance for disaster-related losses that would duplicate benefits available to an applicant from another source; including insurance. FEMA reduces the eligible costs of a grant by the amount of anticipated proceeds. Applicants must take reasonable efforts to maximize the potential benefits from insurance before receiving a Public Assistance (PA) grant.The Applicant insurance policy covered the full cost of permanent repairs from the event. The Applicant did not make a reasonable effort to maximize its insurance proceeds by not disputing the differences in the insurance estimate and the Applicant architect estimate until two years after the insurance inspection. Per DAP 9525.9; FEMA may reimburse DAC that are reasonable and properly tracked; documented; and directly charged to a specific project. Travel and per diem costs for contractor employees that work on eligible PA grants are eligible as direct costs only if they can be and are attributed to individual projects; rather than allocated to multiple PWs.No documentation has been provided to substantiate the force account DAC for PW 457.The contractor DAC is directly tied to the work in managing the grant for permanent work. The travel and per diem costs for contractor employees were allocated proportionally to multiple projects based on the documentation provided. As such they cannot be considered direct costs eligible for reimbursement.

HeadnotesFEMA cannot provide assistance for disaster-related losses that would duplicate benefits available to an applicant from another source; including insurance. FEMA reduces the eligible costs of a grant by the amount of anticipated proceeds. Applicants must take reasonable efforts to maximize the potential benefits from insurance before receiving a Public Assistance (PA) grant.The Applicant’s insurance policy covered the full cost of permanent repairs from the event. The Applicant did not make a reasonable effort to maximize its insurance proceeds by not disputing the differences in the insurance estimate and the Applicant’s architect estimate until two years after the insurance inspection. Per DAP 9525.9; FEMA may reimburse DAC that are reasonable and properly tracked; documented; and directly charged to a specific project. Travel and per diem costs for contractor employees that work on eligible PA grants are eligible as direct costs only if they can be and are attributed to individual projects; rather than allocated to multiple PWs.No documentation has been provided to substantiate the force account DAC for PW 457.The contractor DAC is directly tied to the work in managing the grant for permanent work. The travel and per diem costs for contractor employees were allocated proportionally to multiple projects based on the documentation provided. As such they cannot be considered direct costs eligible for reimbursement.