FEMA has a responsibility to recover from the recipient any assistance inappropriately paid for disallowed costs under its grant awards. This recovery may result from overestimates or underruns on approved costs or from identifying amounts paid for costs that were unallowable because of ineligibility, unreasonable costs or other reasons. Funds owed to FEMA also include monies generated under the award or for income associated with the sale, lease or loan of federal property. FEMA may identify and collect monies owed under a grant award at any time during the lifecycle of an award, not just because of closeout.[265] If the administering office cannot resolve amounts owed under routine administrative processes, it must refer the matter to the FEMA Finance Center to pursue debt collection. When necessary, the FEMA Finance Center refers debt to the Department of Treasury for collection purposes.
265. For information on how to make a payment to FEMA, refer to the “How to Pay FEMA” webpage.