Navigating FEMA’s COVID-19 Appeals Process

The Federal Emergency Management Agency (FEMA) deadline for submitting COVID-19-related costs for final determination is Dec. 31, 2022. As FEMA completes reviews and renders decisions on approvals, many applicants may see notices of denials of costs due to one or multiple eligibility issues.

The pandemic as a nationwide disaster event has presented many issues for applicants, including hospitals, housing authorities and other community nonprofit organizations. The pandemic also created challenges for FEMA as the agency designated to coordinate response.

Many of the aforementioned entities have never encountered FEMA’s Public Assistance (PA) Program and, likewise, FEMA has not dealt with a nationwide biological event that requires an understanding of medical facilities and other community agency operations. These types of operations can be quite different from the more typical facilities and structures that FEMA is accustomed to handling after severe weather events.

FEMA’s only major obligated biological event since 2003 is COVID-19. As biological events do not regularly result in disaster declarations, there is opportunity to reduce delays in the approval process by providing a detailed explanation of costs and why they are necessary. Many large claims have required more than what could be considered an acceptable amount of time for review and reimbursement.

However, nonprofit hospitals and medical facilities have the advantage of being the experts on their costs and operations, and can impart this information productively to FEMA, thereby helping to facilitate a quicker review and reimbursement period.

DEADLINES AND TIMELINES

Let’s look at appeals. Assume FEMA sent your organization a Determination Memorandum (DM), denying reimbursement of specific labor, material, contract or other cost items in your project. Additionally, prior discussions with your FEMA Program Delivery Manager have not been productive.

What are your options? Federal regulations provide you with two opportunities for reconsideration once you receive a DM:

• Write an appeal letter through your state within 60 days of receipt of the DM.
  • FEMA can take up to 90 days to consider the appeal
  • Decision is made by the FEMA Regional Administrator
• Write a second appeal if the first was denied, within 60 days of receipt of the first decision.
  • Decision by the Assistant Administrator for Recovery at FEMA Headquarters
  • Appellant needs to check the FEMA PA Second Appeals Tracker for status

Appeals must contain clear, documented justification supporting your agency’s position, including:

• The amount in dispute (as applicable)
• Citations to relevant statutes, regulations or policies with which the applicant believes FEMA’s determination was inconsistent

Applicants who submit detailed costs with clear documentation have a higher likelihood of obtaining approval. Here are helpful FEMA links with more specific information:

• PA Appeals Database
• PA Second Appeals Tracker (Check status of second appeals at HQ)
• Title 44 Code of Federal Regulations (use the version of CFR from the year of disaster declaration)

Written by Katim Faal and Claire Bourseleth. Copyright © 2022 BDO USA, LLP. All rights reserved. www.bdo.com