Failure to complete a project approved SOW may result in the deobligation of funds and require that the Federal payment be refunded.The documentation; including the Applicant acknowledgement; shows it did not complete the approved SOW; and therefore; FEMA deobligation of funding was proper.FEMA is barred from recovering payments made for a project if all three conditions of Stafford Act section 705(c) are met; including the requirement that the purpose of the grant was accomplished. The Applicant did not complete the approved SOW. Therefore; the purpose of the grant was not accomplished; and section 705(c) does not bar the recovery of funding. FEMA must provide notice of its intent to recover payments made to a recipient and/or an applicant within three years from the date that project completion certification is submitted. However; an RFI will pause the 3-year statute of limitations.Because FEMA transmitted an RFI within the three-year time period; Stafford Act section 705(a) does not prohibit the recovery of funding.

HeadnotesFailure to complete a project’s approved SOW may result in the deobligation of funds and require that the Federal payment be refunded.The documentation; including the Applicant’s acknowledgement; shows it did not complete the approved SOW; and therefore; FEMA’s deobligation of funding was proper.FEMA is barred from recovering payments made for a project if all three conditions of Stafford Act section 705(c) are met; including the requirement that the purpose of the grant was accomplished. The Applicant did not complete the approved SOW. Therefore; the purpose of the grant was not accomplished; and section 705(c) does not bar the recovery of funding. FEMA must provide notice of its intent to recover payments made to a recipient and/or an applicant within three years from the date that project completion certification is submitted. However; an RFI will pause the 3-year statute of limitations.Because FEMA transmitted an RFI within the three-year time period; Stafford Act section 705(a) does not prohibit the recovery of funding.