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A state's HSGP funds for M&A calculation purposes includes the sum total of its SHSP, <br />UASI, and, where applicable, OPSG awards. While the SAA may retain up to five <br />percent (5%) of this total for M&A, the state must still ensure that all sub -recipient award <br />amounts meet the mandatory minimum pass through requirements which are applicable <br />to each HSGP program. To meet this requirement the percentage of SHSP, UASI and <br />OPSG funds passed through to local jurisdictions must be based on the state's total HSGP <br />award prior to withholding any M&A. <br />For additional information on SHSP and UASI M&A, refer to IB 365. For additional <br />clarification on OPSG M&A, refer to DHS/FEMA Policy FP -207-087-1. These <br />documents can be found at <br />http://Wivvv.fema. oovvlpdflzovernment/¢rant/bulletinslinfo365.pdfand <br />http://wvvw.fema.govllibrary/viewRecord.do?id=7837, respectively. <br />Indirect (Facilities & Administrative (F&A)) Costs <br />Indirect costs are allowable under this program as described in 2 C.F.R. § 200.414. With <br />the exception of recipients who have never received a negotiated indirect cost rate as <br />described in 2 C.F.R. § 200.414(f), recipients must have an approved indirect cost rate <br />agreement with their cognizant Federal agency to charge indirect costs to this award. A <br />copy of the approved rate (a fully executed, agreement negotiated with the applicant's <br />cognizant Federal agency) is required at the time of application, and must be provided to <br />DHS/FEMA before indirect costs are charged to the award. <br />E. Application Review Information <br />Allocations <br />Risk Methodology <br />Based upon the requirements of the Homeland Security Act of 2002, as amended, DHS/FEMA <br />continues to use risk to determine final HSGP allocations. DHS/FEMA defines risk as: <br />"potential for an unwanted outcome resulting from an incident, event, or occurrence, as <br />determined by its likelihood and the associated consequences" (see <br />htty://www.dhs.¢ovLelibrarv/assets/dhs-risk-lexicon-2010.pdfl. The DHS/FEMArisk <br />methodology is focused on three elements: <br />• Threat —likelihood of an attack being attempted by an adversary; <br />• Vulnerability — likelihood that an attack is successful, given that it is <br />attempted; and <br />• Consequence — effect of an event, incident or occurrence <br />The risk methodology determines the relative risk of terrorism faced by a given area taking into <br />account the potential risk of terrorism to people, critical infrastructure, and economic <br />security. The analysis includes threats from domestic violent extremists' international terrorist <br />groups, and individuals inspired by terrorists abroad. <br />17 <br />FY 2015 HSGP NOFO <br />