Keeping Track of Supplies: Essential Requirements for FEMA Reimbursement

FEMA's Public Assistance program provides financial assistance for eligible supplies used during disaster response and recovery efforts. Here's a breakdown of the key criteria for reimbursement:

Eligibility:

• Purchased and Necessary: Supplies (including materials) must be:
  • Purchased: Acquired specifically for the disaster response or recovery.
  • Justified as Necessary: Directly contribute to the effectiveness of these efforts.
• Taken from Existing Stock: If using existing supplies:
  • Used for the Incident: They must be demonstrably used in the response or recovery.
  • Documented Usage:  Inventory withdrawal and usage records must track these items.

Documentation:

• Purchased Supplies:
  • Cost Documentation:  Provide original invoices or historical cost records to verify the cost.
• Supplies from Stock:
  • Inventory Records: Maintain records detailing the type and quantity of supplies used.

Justification for Unused Supplies:

• Purchased but Unused:
  • Justification Required: Explain why the supplies were not needed. This ensures FEMA reimburses only for essential supplies.

Unused Residual Supplies:

• Fair Market Value Calculation: When supplies are no longer needed for FEMA-funded projects, calculate their current fair market value if the total exceeds $5,000.
• Potential Funding Reduction: FEMA may reduce reimbursement by this amount.

Importance of Documentation:

Maintaining proper documentation and justification for supplies is crucial for ensuring compliance with FEMA's reimbursement requirements. This helps demonstrate the eligibility and necessity of the supplies claimed.

By following these guidelines, applicants can ensure a smooth and successful FEMA Public Assistance application process for supplies cost reimbursement.

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