Project management is the oversight of an eligible project from the design phase (when necessary) to the completion of the work. Eligible project management activities are those activities that the subgrantee would have performed in the absence of Federal funding. They include:
Grant management costs are split into two types of costs: indirect/management costs and direct costs. Indirect costs are defined as “costs a grantee or subgrantee incurs for a common or joint purpose benefiting more than one cost objective that are not readily assignable to the cost objectives specifically benefited (See 44 CFR §207.2).”
Management costs are defined as “any indirect costs, administrative expenses, and any other expenses that a grantee or subgrantee reasonably incurs in administering and managing the PA grant that are not directly chargeable to a specific project. (See 44 CFR §207.2).” These costs are included in the administrative allowance to the state, which can then decide to pass on a portion to its subgrantees.
Direct administrative costs are “costs incurred by the grantee or subgrantee that can be identified separately and assigned to a specific project. (See 44 CFR §207.6(c)). … Such costs can include staff’s time to conduct an initial inspection, prepare and submit a Project Worksheet (PW), and make interim and final inspections of the project.” 6 These costs are included directly on PWs as part of the project and should be reimbursed like any other project-related expense.
Understanding and effectively tracking each of these cost centers can result in a significant difference in reimbursement for force account and contract labor expenses.
As defined in 44 CFR §13.3, equipment is “tangible, non-expendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit,” and supplies are “all tangible personal property other than equipment.”
As of September 2009, FEMA’s policy on funding the replacement of damaged equipment, vehicles and supplies became more flexible, no longer limiting replacement to the same number of items of similar age, capacity, and condition, as previous policy had required. While funding is still capped at the cost to replace destroyed equipment, vehicles and supplies with the same number of items of approximately the same age, condition, and capacity that existed at the time of the disaster as determined using “blue book” values or similar price guides, applicants may now replace these items with ones for use for the...