Under 44 C.F.R. 206.206(c)(1); the Applicant has 60 days to file an appeal upon receipt of notice of the decision being appealed.In this instance; the Applicant received notice of FEMA decision to reduce funding through a March 9; 2015 letter but filed its appeal on June 29; 2015; 112 days after March 9; 2015.Pursuant to OMB Circular A-87 App. A (C)(4)(a); applicable credits refer to those receipts or reduction for expenditure type transactions that offset or reduce expense items allocable to federal awards as direct or indirect costs. Examples of such transactions are: purchase discounts; rebates or allowances; recoveries or indemnities on losses; insurance refunds or rebates; and adjustments of overpayments or erroneous charges. To the extent that such credits accruing to or received by the governmental unit relate to allowable cost; they shall be credited to the federal award either as a cost reduction or cash refund; as appropriate.The liquidated damages offset is a recovery on a loss; accordingly they should be credited to the federal award.

FEMA Second Appeal Analysis; Florida Department of Transportation; FEMA-4068-DR-FL; at 3 (Aug. 5; 2016).FEMA Second Appeal Analysis; Florida Department of Transportation; FEMA-1785-DR-FL; at 3 (July 9; 2016).HeadnotesUnder 44 C.F.R. § 206.206(c)(1); the Applicant has 60 days to file an appeal upon receipt of notice of the decision being appealed.In this instance; the Applicant received notice of FEMA’s decision to reduce funding through a March 9; 2015 letter but filed its appeal on June 29; 2015; 112 days after March 9; 2015.Pursuant to OMB Circular A-87 App. A (C)(4)(a); applicable credits refer to those receipts or reduction for expenditure type transactions that offset or reduce expense items allocable to federal awards as direct or indirect costs. Examples of such transactions are: purchase discounts; rebates or allowances; recoveries or indemnities on losses; insurance refunds or rebates; and adjustments of overpayments or erroneous charges. To the extent that such credits accruing to or received by the governmental unit relate to allowable cost; they shall be credited to the federal award either as a cost reduction or cash refund; as appropriate.The liquidated damages offset is a recovery on a loss; accordingly they should be credited to the federal award.