FEMA and FHWA Emergency Relief Funds Reimbursements to State Departments of Transportation (2015)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

67 Cost Recovery Charging users of a service for that service, rather than the organization absorbing the cost. Cost Tracking Following the costs of various activities through the cost man- agement system, relying upon the use of discrete coding of activities and their associated costs. Discrete coding includes methods such as time collection (the use of personnel time sheets) and expense accumulation. Direct Costs Costs that are directly linked to a specific service, activity, or department. Direct costs can be identified specifically with a particular final cost objective. Fixed Cost Costs that do not vary with increases and decreases in activity. Indirect Costs Costs that are not directly linked to a specific service, activ- ity or department. Indirect costs are incurred for a common or joint purpose and may either benefit more than one cost objective or not be readily assignable to the cost objectives specifically benefited without effort disproportionate to the results achieved. Mixed or Semi Variable Cost Costs that contain both a variable cost element and a fixed cost element. These costs may vary incrementally with increases and decreases in activity. Resource Utilization Examining resources to ensure optimal allocation. Restruc- turing shifts so that police work fewer overtime hours is an example of resource utilization. Variable Costs Costs that vary with increases and decreases in activity. COST MANAGEMENT TERMS Source: FHWA Planned Special Events: Cost Management and Cost Recovery Primer, Federal Highway Administration, Washington, D.C., May 2009. Activity-Based Costing A method of allocating indirect costs in which the cost of resources consumed is assigned to the activity consuming the resource. Asset Management The practice of taking a comprehensive view of the entire portfolio of resources available in order to achieve system- wide agency goals at optimal cost benefit. This includes the ability to show how, when, and why resources were committed. Cost Analysis The gathering of various cost tracking information to prepare reports which can be reviewed to determine the nature and relationship of the cost elements. Cost Driver The activity that is the best indicator of cost. Cost Management Effective, overarching control of an organization’s finances across multiple stages. Cost Objective A cost objective, also called the cost object or cost target, is the good or service being provided. All costs should be assigned to cost objectives. Costs are allocated to the cost objectives that benefit most from incurring the cost. Cost Planning Activities such as cost estimating, forecasting, and budgeting. Cost Pool The accumulation of costs whose total is allocated using one allocation base, such as a cost driver. GLOSSARY

68 FHWA EMERGENCY RELIEF AND FEDERAL EMERGENCY MANAGEMENT AGENCY PUBLIC ASSISTANCE PROGRAM TERMS Applicant For the Federal Emergency Management Agency Public Assistance (FEMA PA)—a state agency, local government, Indian tribe, authorized tribal organization, Alaska Native village or organization, and certain private nonprofit (PNP) organizations that submit a request for disaster assistance under the presidentially declared major disaster or emergency. The terms “applicant” and “subgrantee” are often used inter- changeably. For the FHWA Emergency Response (ER)—the state highway agency is the applicant for federal assistance under 23 United States Code (U.S.C.) 125 for state highways and local roads and streets that are a part of the federal-aid highways [Code of Federal Regulations (CFR), Title 23, § 668.103 “Definitions”]. Applicant Liaison (FEMA PA) A state representative responsible for providing applicants with state-specific information and documentation require- ments. The Applicant Liaison works closely with the Public Assistance Crew Leader (PACL) to provide any technical assistance or guidance the applicant may require. The terms “applicant liaison” and “state public assistance representative” are often used interchangeably. Applicants’ Briefing (FEMA PA) A meeting conducted by a representative of the state for potential FEMA PA applicants. The briefing occurs after an emergency or major disaster has been declared and addresses FEMA PA application procedures, administrative require- ments, funding, and program eligibility criteria. Case Management (FEMA PA) A system approach to provision of equitable and timely service to applicants for disaster assistance. Organized around the needs of the applicant, the system consists of a single point of coordination, a team of on-site specialists, and a centralized, automated filing system. Case Management File (CMF) (FEMA PA) A centralized data bank of all applicant activities. Data entered into this bank creates a chronological history of everything that has taken place with an applicant from the time the appli- cant applies for assistance until the applicant has received all monies and the file has been closed. Catastrophic Failure Extraordinary levels of damage, severely affecting the infra- structure or asset (NCHRP Report 525: Volume 16, Guide to Emergency Response Planning at State Transportation Agencies 2010). Closeout Grant closure occurs when FEMA determines that all appli- cable administrative actions related to the PA program are complete and all program funds reconciled. At this stage, all PA program projects have been completed, the state has awarded all grant funds and submitted its final expenditure report to FEMA, and FEMA has adjusted the funding level for the program as appropriate. FHWA ER closeouts occur in a similar manner to other project closeouts. FHWA may inspect the disaster site. Contractor Any individual, partnership, corporation, agency, or other entity (other than an organization engaged in the business of insurance) performing work by contract for the federal government or a state or local agency, or tribal government. Cost Estimating Format (FEMA PA) A forward-pricing methodology for estimating the total cost of repair for large permanent projects by use of construction industry standards. The format uses a base cost estimate and design and construction contingency factors, applied as a percentage of the base cost. Declarations There are two types of declarations (emergency and major disaster). Both declaration types authorize the president to provide federal disaster assistance. However, the cause of the declaration and the type and amount of assistance differ. Designated Area Any emergency or major disaster-affected portion of a state that has been determined eligible to apply for federal assistance. Emergency Any occasion or instance for which, in the determination of the president, federal assistance is needed to supplement state and local efforts and capabilities to save lives and protect

69 property and public health and safety, or lessen or avert the threat of a catastrophe in any part of the United States. Emergency Repairs (FHWA ER) Repairs during and immediately after a disaster to restore essential traffic, minimize the extent of damage, or protect the remaining facilities. These repairs can begin immediately after a disaster, and prior FHWA approval is not required. Properly documented costs are later reimbursed once the FHWA Division Administrator makes a finding that the disaster is eligible for ER program funding. Emergency Work (FEMA PA) That work that is performed to reduce or eliminate an immedi- ate threat to life, protect health and safety, or protect improved property that is threatened in a significant way as a result of a major disaster. Emergency work frequently includes clear- ance and removal of debris and temporary restoration of essential public facilities and services (Categories A and B). Executive Orders (EOs) Legally binding orders given by the president to federal administrative agencies. Executive orders generally are used to direct federal agencies and officials in their execution of congressionally established laws or policies. Executive orders do not require congressional approval to take effect, but they have the same legal weight as laws passed by Congress. Expedited Payments (FEMA PA) An advance of grants to assist with payment of emergency work after a disaster event. The amount of funding is 50% of the federal share of emergency costs as identified during the Preliminary Damage Assessment. Payment for Category A will be made within 60 days after the estimate was made and no later than 90 days after the preapplication (Request for FEMA Public Assistance) was submitted. Facility (FEMA PA) Any publicly or private nonprofit (PNP)-owned building, works, system, or equipment (built or manufactured) or cer- tain improved and maintained natural features. Land used for agricultural purposes is not a facility. Federal-Aid Highways (FHWA ER) All public roads including bridges that are not classified as local or rural minor collectors (or minor collectors located in rural areas). Note that urban minor collectors or minor col- lectors located in urban areas are included in the definition. In the United States, about one-quarter of all public roads are federal-aid based on mileage [23 U.S.C. 101(a)(5)]. FEMA–State Agreement (FEMA PA) A formal legal document stating the understandings, com- mitments, and binding conditions for assistance applicable as the result of a major disaster or emergency declared by the President. Flood Control Works Facilities constructed for the purpose of eliminating or reduc- ing the threat of flood; for example, levees, floodwalls, flood control channels, and dams designed for flood control. Force Account Labor performed by the applicant’s employees and applicant- owned equipment, rather than by a contractor. Grantee (FEMA PA) The state, in most cases, acts as the grantee for the FEMA Public Assistance program. The grantee is accountable for the use of the funds provided. The terms “grantee” and “State” are often used interchangeably. Hazard Mitigation (FEMA PA) Any cost-effective action taken to prevent or reduce the threat of future damage to a facility from a disaster event. Heavy Maintenance (FHWA ER) When a disaster has caused damage requiring heavy main- tenance or work frequently performed by the applicant’s main- tenance crews, repairs are not eligible. Heavy maintenance is usually performed by highway agencies to repair damage nor- mally expected from seasonal and occasionally unusual natural conditions or occurrences. It includes work at a site required as a direct result of a disaster that can reasonably be accommodated by a state or local road authority’s main tenance, emergency, or contingency program. Examples include work necessary to repair minor damage due to eroded shoulders, filled ditches and culverts, pavement settlement, mud and debris deposits, slope sloughing, and slip-outs in cut or fill slopes. Improved Property A structure, facility, or item of equipment that was built, constructed, or manufactured. It includes improved and

70 maintained natural features. Land used for agricultural pur- poses is not improved property. Incident Period The time interval during which the disaster-causing incident occurs. No federal assistance under the Stafford Act shall be approved unless the damage or hardship to be alleviated resulted from the disaster-causing incident which took place during the incident period or was in anticipation of that incident. Kickoff Meeting (FEMA PA) The initial meeting of an applicant, the state FEMA PA Representative (Applicant Liaison), and the FEMA Public Assistance Crew Leader. At this working session, the appli- cant provides a list of damages and receives comprehensive information about the FEMA Public Assistance program and detailed guidance for the applicant’s specific circumstances. This is the first step in establishing a partnership among FEMA, the state, and the applicant and is designed to focus on the specific needs of the applicant. The meeting focuses on the eligibility and documentation requirements that are most pertinent to the applicant. Large Project (FEMA PA) An eligible project, either emergency or permanent work that has a damage dollar value at or above the fiscal year thresh- old for large projects. The threshold is adjusted each fiscal year to account for inflation. Large project funding is based on documented actual costs. With the SRIA changes, sub- grantees may voluntarily request that large projects be based on estimated costs. Major Disaster Any natural catastrophe (including any hurricane, tornado, storm, high water, wind driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the United States, which in the determination of the President causes damage of sufficient severity and mag- nitude to warrant major disaster assistance under the Stafford Act to supplement the efforts and available resources of states, local governments, and disaster relief organizations in alleviat- ing the damage, loss, hardship, or suffering caused thereby. Mutual Aid Agreement An agreement between jurisdictions or agencies to provide services across boundaries in an emergency or major disaster. Such agreements usually provide for reciprocal services or direct payment for services. Natural Disaster Natural disaster means any naturally occurring major emer- gency. (Guide to Emergency Response Planning at State Trans- portation Agencies, NCHRP Report 525, Volume 16, 2010) Obligated Funds The funds FEMA makes available to the grantee for approved public assistance projects. The grantee is then required to make payment of the federal share to the applicant as soon as practicable. Other Essential Governmental Service Facilities Private nonprofit (PNP) museums, zoos, performing arts facilities, community arts centers, community centers, librar- ies, homeless shelters, senior citizen centers, rehabilitation facilities, mass transit facilities, shelter workshops, and facilities that provide health and safety services of a govern- mental nature. All such facilities must be open to the general public. Permanent Repairs (FHWA ER) Repairs undertaken (usually after emergency repairs have been completed) to restore the highway to its comparable facility. Permanent repairs must have prior FHWA approval and authorization unless done as part of the emergency repairs. Permanent Work (FEMA PA) That work which is required to restore a facility, through repairs or replacement, to its predisaster design, function, and capacity in accordance with applicable codes and standards (Categories C through G). Pre-application (FEMA PA) An applicant’s official notification to FEMA of intent to apply for PA funds. The form provides general identifying infor- mation about the applicant. The terms “pre-application” and “request for public assistance” are often used interchangeably. Preliminary Damage Assessment (PDA) (FEMA PA) A survey performed to document the impact and magnitude of the disaster on individuals, families, businesses, and pub- lic property and gather information for disaster management purposes. The information gathered is used to determine whether federal assistance is to be requested by the governor and forms the basis for the disaster declaration request.

71 Private Nonprofit (PNP) Facilities (FEMA PA) Educational, utility, irrigation, emergency, medical, rehabilita- tional, and temporary or permanent custodial care facilities and facilities on Indian reservations, as defined by the president. Other PNP facilities that provide essential services of a govern- mental nature are eligible and are listed in this Glossary under Other Essential Governmental Service Facilities. Private Nonprofit (PNP) Organization (FEMA PA) Any nongovernmental agency or entity that currently has either an effective ruling letter from the U.S. Internal Revenue Ser- vice granting tax exemption or satisfactory evidence from the state that the nonrevenue producing organization or entity is a nonprofit one organized or operating under state law. Project Formulation The process of identifying the eligible scope of work (SOW) and estimating the costs associated with that SOW for each applicant’s projects. Project Specialist (FEMA PA) FEMA’s specialist who works directly with the applicant in assessing damage sites and developing SOWs and cost estimates. The FEMA Project Specialist will also identify the need for other specialists and work with the FEMA Pub- lic Assistance Crew Leader in obtaining their services for projects. Project Worksheet (PW) (FEMA PA) Form used to document the location, damage description and dimensions, scope of work, and cost estimate for a project. It is the basis for the grant. The terms “project worksheet” and “subgrant application” are often used interchangeably. Public Assistance (FEMA PA) Supplementary federal assistance provided under the Stafford Act to state, local, and tribal governments or eligible PNPs to help them recover from federally declared major disasters and emergencies as quickly as possible. Public Assistance Crew Leader (PACL) A FEMA representative who works with the applicant to resolve disaster-related needs and to ensure that the appli- cant’s projects are processed as efficiently and expeditiously as possible. The Public Assistance Crew Leader ensures continuity of service throughout the delivery of the Public Assistance program. Request for Public Assistance (RPA) (FEMA PA) An applicant’s official notification to FEMA of intent to apply for PA funds. The form provides general identifying informa- tion about the applicant. The terms “request for public assis- tance” and “pre-application” are often used interchangeably. Small Project (FEMA PA) An eligible project, either emergency or permanent work, that has a damage dollar value below the fiscal year threshold. The threshold is adjusted each fiscal year to account for inflation. Small project funding is based on estimated costs if actual costs are not yet available. Special Considerations (FEMA PA) Factors that must be addressed before federal FEMA PA grant money can be obligated to repair or restore damaged facilities. These factors include, but are not limited to, general and flood insurance, historic preservation, environmental protection, and hazard mitigation. Stafford Act (FEMA PA) Robert T. Stafford Major Disaster Relief and Emergency Assistance Act (Stafford Act), Public Law (PL) 100-707, signed into law November 23, 1988; the 1988 law amended the Major Disaster Relief Act of 1974, PL 93-288. This Act constitutes the statutory authority for most federal major disas- ter response activities, especially as they pertain to FEMA and FEMA programs. The most recent version of the Act was released in April 2013. State Administrative Plan (FEMA PA) The state is required to develop a state administrative plan to administer the Public Assistance program. The plan should include the designation of responsibilities for state agencies and staffing for the Public Assistance program. An approved state administrative plan must be on file with FEMA before grants will be approved for any major disaster. The approved state administrative plan should be incorporated into the state’s emergency plan. State Public Assistance (FEMA PA) Representative An applicant’s point of contact, designated by the state, who will help the applicant obtain FEMA assistance. The terms “state PA representative” and “applicant liaison” are often used interchangeably. Subgrant Application (FEMA PA) Form used to document the location, damage description and dimensions, scope of work, and cost estimate for a

72 project. It is the basis for the grant. The terms “subgrant application” and “project worksheet” are often used inter- changeably. Subgrantee (FEMA PA) A state agency, local government, Indian tribe, authorized tribal organization, Alaska Native village or organization, and certain private nonprofit organizations that submit a request for disaster assistance under the presidentially declared major disaster or emergency. The terms “subgrantee” and “applicant” are often used interchangeably. Technical Specialist (FEMA PA) FEMA’s Technical Specialist is a resource for the applicant. A Technical Specialist has a defined area of expertise, such as debris removal and disposal, roads and bridges, infrastruc- ture, environmental and historic preservation compliance, insurance, cost estimating, or floodplain management.