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A TRUE COPY CERTIFICATION ON LAST PAGE J.R. SMITH, CLERK `aXn i4L �' increased, the proposed hazard mitigation SOW and cost is limited to the SOW and cost necessary to mitigate to the pre -disaster capacity of the damaged facility. 3. Applicants must complete the approved hazard mitigation in order to retain the fixed -cost amount accepted for hazard mitigation. D. USE OF FUNDS Outcome: Increase effectiveness of assistance through increased flexibility and expanded use of funds. 1. Applicants may use fixed -cost funds, including any excess funds across all Pilot Projects. 2. Applicants may request to use fixed -cost funds for any of the activities defined as eligible under the Use of Fixed -Cost Funds column in the table below. Once FEMA approves and the Applicant completes the SOW associated with these activities, the Applicant may use any excess funds for the expanded list of eligible activities listed under the Use of Excess Funds column. 3. Any excess funds remaining after the approved SOW is complete may be used for cost- effective activities that reduce the risk of future damage, hardship, or suffering from a major disaster, and activities that improve future PA operations or planning. The Applicant must submit a proposed SOW for use of any excess funds, along with a project timeline to the Recipient within 90 days of the date the last Alternative Procedures Project was completed. The Recipient must forward the request to FEMA within 180 days of date the last Alternative Procedures Project was completed. FEMA will evaluate the proposed use of excess funds for reasonableness to ensure prudent use of funds. FEMA will also evaluate the submitted project timeline and approve an appropriate deadline for project completion, not to exceed the overall disaster period of performance. 4. The following table lists examples of eligible and ineligible types of work andcosts when using fixed -cost funds and excess funds. Type of Work or Cost (all work or costs listed must Use of Use of otherwise be eligible for PA) Fixed -Cost Excess Funds Funds Restoration of disaster -damaged facilities and equipment Eligible Eligible Restoration of disaster -damaged facilities in undeclared areas Ineligible Eligible within the same State or Tribal area Alternate Projects (e.g., purchasing equipment, Eligible Eligible constructing new facilities, improvements to undamaged facilities such as shelters and emergency operation centers) in declared areas Cost-effective hazard mitigation measures for undamaged Ineligible Eligible facilities Covering future insurance premiums, including meeting Ineligible Eligible obtain and maintain (O&M) insurance requirements, on damaged or undamaged facilities Page 3 of 8 41 FEMA Recovery Policy FP 104-009-7