The Individual and Family Grants (IFG) program is a cost-shared program authorized by Section 411 of the Robert T. Stafford Disaster Relief and Emergency Act (Stafford Act), Public Law 93-288, as amended. Its purpose is to provide funds for the necessary expenses and serious needs of disaster victims, which cannot be met through other forms of disaster assistance or through other means such as insurance.

The Governor may request that a Federal grant be made to a State for the purpose of such State making grants to individuals or families who, as a result of a major disaster, are unable to meet disaster-related necessary expenses or serious needs. The total Federal grant is made only on condition that 25 percent of the actual cost of meeting individuals= or families= necessary expenses or serious needs is paid from funds made available by the State (44 CFR section 206.131).

The State administers the IFG program based on a State Administrative Plan that must be approved by FEMA each January and at the beginning of the recovery process before Federal funds are awarded to the State. FEMA provides States administrative expenses in an amount equal to up to five percent of the Federal share of the program.

The objective is to provide assistance to States, local governments, and selected non-profit organizations under the Public Assistance Program.

Following a Presidential declaration of a major disaster or an emergency, the Federal Emergency Management Agency (FEMA) awards grants for public assistance to States. The State may use the funds to restore its own disaster-damaged projects and to provide subgrants to local governments and selected private non-profit facilities.

The Public Assistance program is administered by the State (e.g., the State Emergency Agency) in accordance with a FEMA-State Agreement to provide assistance which may be available under an emergency or major disaster declaration. The State acts as the grant administrator for all funds provided under the Public Assistance grant program. The grant administrator's responsibility includes providing technical advice and assistance to eligible subgrantees, providing State support for damage survey activities, ensuring that all potential applicants are aware of assistance available, and submission of documents necessary for grant awards (44 CFR sections 206.200 through 206.253).

For purposes of the Public Assistance program, the following terms will be used:

Public Assistance program awards are made based upon a Damage Survey Report (DSR) which is prepared by an inspection team. The inspection team normally includes a representative of FEMA, the State, and any subgrantee. The DSR documents the inspection team's determination of the eligible scope of work and cost estimate. The Public Assistance Program will fund a part of this eligible work in accordance with the FEMA-State Agreement. Each DSR has a control number and any supplemental DSRs will be referenced to the original DSR.

Project funding made for large and small projects is based upon the cost of the eligible work for the individual project. Projects which equal or exceed the threshold of $47,100 for October 1, 1997, through September 30, 1998 ($46,000 for October 1, 1996, through September 30, 1997), are large projects. Projects below this threshold are small projects. This threshold is adjusted by FEMA each October to reflect changes in the Consumer Price Index. The thresholds are published in the Federal Register. The date the disaster is declared on a disaster declaration determines the threshold in use.

For small projects, final payment of the Federal share of eligible costs is made upon approval of the project. The amount awarded for small projects based on the DSR generally will not change except under unusual circumstances, such as the work was not done, there is an unexpected insurance recovery, or there is an obvious error in calculation. At close-out of the disaster contract, the State is required to certify that all projects were properly completed and that the State contribution, as specified in the FEMA-State Agreement, was paid to each subgrantee. However, this certification does not specify the amount spent by a subgrantee on small projects. If the actual cost for small projects is less than the estimated cost on the DSR, FEMA generally will not ask for a refund. Similarly, FEMA generally will not provide additional funding when actual costs exceed the DSR estimate. However, provision is made that, when a subgrantee has significant overruns, a request may be made to FEMA for additional funding based upon the total final costs for all small projects (44 CFR sections 206.204(e) and 206.205(a)).

For large projects, the State must make an accounting to FEMA of eligible costs for each approved large project. In submitting the accounting, the State must certify that reported costs were incurred in the performance of eligible work, that the approved work was completed, that the project is in compliance with the FEMA-State Agreement, and that payments for the project have been made in accordance with the A-102 Common Rule=s requirements for payment. The subgrantee is required to make similar accounting and certifications to the State. If actual costs are less than the approved amount, then the FEMA share will be based upon the actual costs. The subgrantee may request additional funding for eligible cost overruns on large projects. For additional funding, these requests must include a written recommendation from the State and approval of the RD (44 CFR sections 206.204(e) and 206.205).

If a subrecipient desires to make improvements, but still restore the pre-disaster function of a damaged facility, State approval must be obtained. Federal funding for an improved project is limited to the Federal share of the approved estimate of the eligible costs. Funds approved as an improved project can only be used as a contribution for the construction of larger or improved facilities that restore at least the pre-disaster capacity of the damaged or destroyed facility. For example, if eligible work to restore the pre-disaster capacity is $100,000, and the subgrantee chooses to rebuild an improved facility which costs $200,000, then the FEMA share is only based on the $100,000. However, if the actual costs is less than the eligible work of $100,000 (e.g., construction costs are much lower than expected), then a FEMA adjustment is required (44 CFR section 206.203).

In a case where the subgrantee determines that the public welfare would not be best served by restoring a damaged public facility, the State may request that FEMA approve an alternate project. Federal funding for such alternate projects is based on 90 percent of the approved estimate of eligible costs (44 CFR section 206.203(d)(2)). For example, if the approved estimate of eligible costs to restore the pre-disaster capacity is $100,000, and the entity chooses not to rebuild but instead to do alternate work, then assuming a 75 percent match, the Federal share is computed as:

Funds contributed for alternate projects may be used to repair or expand other selected public facilities, to construct new facilities, or to fund hazard mitigation measures. These funds may neither be used to pay the non-Federal share of any project nor for any operating expense (44 CFR section 206.203(d)(2)).

Funds approved for an alternate project can be used only for alternate projects specifically approved by FEMA. While the States and subgrantees have flexibility to propose the type and size of alternate projects they wish to construct, FEMA must review such proposed projects to ensure compliance with environmental and other special concerns (44 CFR section 206.203).