The final component evaluated for eligibility, as shown in Figure 10, are the costs claimed by the Applicant. Not all costs incurred as a result of the incident are eligible. To be eligible, costs must be:

• Directly tied to the performance of eligible work;
• Adequately documented;
• Reduced by all applicable credits, such as insurance proceeds and salvage values;
• Authorized and not prohibited under Federal, State, Territorial, Tribal, or local government laws or regulations;
• Consistent with the Applicant's internal policies, regulations, and procedures that apply uniformly to both Federal awards and other activities of the Applicant; and
• Necessary and reasonable to accomplish the work properly and efficiently.