FEMA Needs To Track

Performance Data and

Develop Policies, Procedures,
and Performance Measures
for Long Term Recovery
Offices

OIG-15-06-D
October 30, 2014

HIGHLIGHTS
FEMANeedstoTrackPerformanceDataand
DevelopPolicies,Procedures,andPerformance
MeasuresforLongTermRecoveryOffices
October30,2014

WhyWeDid
This
Between1994and2013,FEMA
operatedsevenLongTerm
RecoveryOffices.FEMA
obligatedandspentmorethan
$4billioninadministrativecosts
andmorethan$1billionin
salariesfortheseoffices.
Ourauditobjectivewasto
determinewhetherFEMAs
policies,procedures,and
performancemeasuresfor
establishing,operating,and
closingLongTermRecovery
OfficesmeetFederalstatutes
andareconsistentlyapplied.


WhatWe
Recommend
Wemadetwo
recommendationstoFEMA
that,whenimplemented,will
allowFEMAtomanageLong
TermRecoveryOfficesmore
consistentlyandeffectively.

ForFurtherInformation:

WhatWeFound
FEMAdoesnottrackcostsordataassociatedwith
performancemeasuresforLongTermRecoveryOffices.
Withouttrackingcostsordata,FEMAcannotdetermine
whethertheseofficesarecosteffective.FEMAestablishes,
operates,andclosesLongTermRecoveryOfficeswithout
standardizedpolicies,procedures,andperformance
measures.Withoutthesecontrolsinplace,FEMAisatriskfor
mismanagementofFederaldisasterfundsandcannotensure
consistencyinestablishingandmanagingtheseoffices.
CorrectingthesedeficiencieswillprovideFEMAthe
informationandguidanceitneedstodeterminewhether
LongTermRecoveryOfficesarecosteffective.Inaddition,
FEMAcanbetterensureconsistencyinestablishingand
managingtheseoffices.



FEMAResponse

FEMAconcurswithourrecommendations.FEMAplansto
determinethecosteffectivenessofvariousmodelsfor
managingLongTermRecoveryOffices.Thesemodelswill
examinepostdisastercoordinationanddeliveryofdisaster
assistancetoassistFEMAindevelopingdecisionmaking
guidanceforidentifying,tracking,andreportingontheneed
forandcosteffectivenessoftheseoffices.FEMAiscurrently
documentingtheprocess,procedures,performance
measures,lessonslearned,andbestpracticesusedtoscope
andestablishtheSandyRecoveryOffice.FEMA'swritten
responsetousforthisreportisduein90days.


ContactourOfficeofPublicAffairsat
(202)2544100,oremailusat
DHSOIG.OfficePublicAffairs@oig.dhs.gov

www.oig.dhs.gov

OIG-15-06-D

OFFICE OF INSPECTOR GENERAL

Department of Homeland Security
Washington, DC 20528

OCT 3 0 2014
MEMORANDUM FOR:

Elizabeth Zimmerman
...ministrator,

Response and Recovery

ncy Management Agency

'"'"'-''>-
--

FROM:
Assis

or General

Office of Emergency Management Oversight

SUBJECT:

FEMA Needs To Track Performance Data and Develop

Policies, Procedures, and Performance Measures for Long
Term Recovery Offices

Attached for your information is our final letter report, FEMA Needs To Track
Performance Data and Develop Policies, Procedures, and Performance Measures for
Long Term Recovery Offices. We incorporated the formal comments from the Federal

Emergency Management Agency in the final report.

The report contains two recommendations aimed at improving the management of
Long Term Recovery Offices. Your office concurred with both recommendations. Based
on information you provided in the response to the draft report, we consider the
recommendations resolved with a target completion date of March 31, 2015. Once your
office has fully implemented the recommendations, please submit a formal close-out
letter to us within 30 days so that we may close the recommendations. The request
should be accompanied by evidence of completion of agreed-upon corrective actions.
Please email a signed PDF copy of all responses and closeout requests to the Office of
Emergency Management Oversight at OIGEMOFollowup@oig.dhs.gov.
Consistent with our responsibility under the Inspector General Act, we will provide
copies of our report to appropriate congressional committees with oversight and
appropriation responsibility over the Department of Homeland Security. We will post
the report on our website for public dissemination.
Major contributors to this report are Kaye McTighe, Director, Headquarters Office;
Nigel Gardner, Audit Manager; Christine Alvarez, Auditor-in-Charge; and
Kimberly Letnaunchyn, Program Analyst.

www.oig.dhs.gov

OIG-15-06-D

OFFICE OF INSPECTOR GENERAL

Department of Homeland Security

Please call me with any questions, or your staff may contact Tonda L. Hadley, Deputy
Assistant Inspector General for Audit Services, Office of Emergency Management
Oversight, at (214)436-5200.
Attachment

www.oig.dhs.gov

OIG-15-06-D

OFFICE OF INSPECTOR GENERAL

Department of Homeland Security

Background
WhenthePresidentdeclaresaFederaldisaster,theFederalEmergencyManagement
Agency(FEMA)RegionalOfficethatservicestheaffectedStateisresponsiblefor
responseandrecoveryefforts.TheRegionalOfficeopensaJointFieldOfficeto
coordinateeffortswithitsdisasterpartners.WhenaJointFieldOfficecloses,the
disasterprogramsusuallytransferbacktotheRegionalOffice.IncaseswhereStateand
localcommunityofficials,businesses,andcitizensneedadditionalrecoveryassistance,
FEMAmayopenaLongTermRecoveryOffice.Theseofficesopenbecausethesize,
severity,orthenumberofdisastersoverwhelmstheRegionalOffice.Figure1showsthe
progressionofthedisasterresponseandrecoveryresponsibilitythroughFEMA.
Figure1:DisasterFlowchart

Disaster
Declaration

RegionBegins
Response

Region
Continues
Response

No
JointField
OfficeOpens

JointField
OfficeCloses

Yes

CanRegion
Resume
Responsibilityof
Disaster

No

LongTerm
Recovery
OfficeOpens

LongTerm
Recovery
OfficeCloses

Region
Resumes
Responsibility
forDisaster

Yes

Source: DHS OIG

ThestructureofLongTermRecoveryOffices,inpart,mirrorsdivisionswithinthe
RegionalandJointFieldOfficestoensureasmoothtransitionbackintoregional
operations.Forexample,eachofficehasLogistics,Finance,andOperationsDivisions.


ResultsofAudit

Weestimatethat,between1994and2013,FEMAobligatedandspentmorethan
$4billioninadministrativecostsandmorethan$1billioninsalariesforthesevenLong
TermRecoveryOffices.Theseofficeswereresponsiblefor26majordisaster
declarationstotaling$66billioninobligatedfunds.However,FEMAdoesnottrackcosts
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OFFICE OF INSPECTOR GENERAL

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orperformancedatafortheseoffices.Asaresult,FEMAcannotdeterminethecost
effectivenessofLongTermRecoveryOfficeoperations.Inaddition,FEMAhasnot
createdstandardizedpolicies,procedures,andperformancemeasuresforLongTerm
RecoveryOfficeoperations.Withoutthem,FEMAcannotensureconsistencyin
establishingandmanagingtheseoffices.

InJanuary2014,FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane
Sandy,responsiblefortherecoveryeffortsinNewYorkandNewJersey.Federal
spendingforHurricaneSandywilllikelysurpassallbutonepreviousdisaster(Hurricane
Katrina).Therefore,itisimperativethatFEMAshould(1)identify,track,andreport
performancedatathatshowscosteffectivenessforLongTermRecoveryOffices;and
(2)implementstandardizedpolicies,procedures,andperformancemeasuresto
establish,operate,andcloseLongTermRecoveryOffices.

FEMADoesNotTrackLongTermRecoveryOfficeCostsorPerformanceData

FEMAdoesnottrackcostsordataassociatedwithperformancemeasuresforLongTerm
RecoveryOffices.Withouttrackingcostsordata,FEMAcannotdeterminewhetherLong
TermRecoveryOfficesarecosteffective.

Costs

FEMAcouldnotverifythecostsofeachLongTermRecoveryOffice.TheFederal
Managers'FinancialIntegrityActof1982(Act),inpart,requiresthatFederalagencies
properlyrecordandaccountforrevenuesandexpendituresapplicabletoagency
operationstomaintainaccountabilityfortheirassets.FEMAassertsthatitisnotin
violationofthisActbecauseFEMAsfinancialsystemtracksoveralldisastercosts.
However,FEMAcouldnotprovidethecostsbylocation.Tofullyaccomplishthegoalof
theAct,FEMAshouldbetrackingthecostsforeachLongTermRecoveryOffice.

FEMAprovidedtheoveralldisastercostsrelatedtosevenLongTermRecoveryOffices.
WeworkedwithFEMAtoanalyzethesecostsandmutuallyagreedtoestimatethat
FEMAobligatedandspentmorethan$4billioninadministrativecostsandmorethan$1
billioninsalariesforthesevenoffices.Withouttrackingcosts,FEMAisunableto
determinewhetherLongTermRecoveryOfficeoperationsarecosteffective.Further,
FEMAneedstotrackimportantdatasuchasofficespending,disasterprogram
workload,andnumberofLongTermRecoverypersonneltodetermineeconomiesof
scale.

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Department of Homeland Security


DataAssociatedwithPerformanceMeasures

Inaddition,FEMAisnottrackingdataassociatedwithperformancemeasures.
Performancemeasurementistheongoingmonitoringandreportingofprogram
accomplishments,particularlyprogresstowardpreestablishedgoals.Performance
measuresmayaddress(1)thetypeorlevelofprogramactivitiesconducted(process),
(2)thedirectproductsandservicesaprogramdelivers(outputs),or(3)theresultsof
thoseproductsandservices(outcomes).Withouttrackingsuchdata,FEMAcannot
determinewhethertheeconomiesofscalearecosteffective.

Forexample,FEMAmirrorsitsLongTermRecoveryOffices,inpart,aftertheoperations
intheRegionalandJointFieldOffices.AllthreeofficetypeshaveLogistics,Financial,and
OperationsDivisions.Theseparalleldivisionsexisttoallowforasmoothtransitionof
disasteroperationsbacktotheRegionalOfficewhenRegionalofficialsdecidetheyno
longerneedaLongTermRecoveryOffice.

FEMANeedsStandardizedPolicies,Procedures,andPerformanceMeasuresforLong
TermRecoveryOffices

FEMAestablishes,operates,andclosesLongTermRecoveryOfficeswithout
standardizedpolicies,procedures,andperformancemeasures.TwoFederalstatutes,
theRobertT.StaffordDisasterReliefandEmergencyAssistanceActandPostKatrina
EmergencyManagementReformActof2006,authorizeFEMAtoestablishfieldoffices,
includingLongTermRecoveryOffices.However,thesestatutesdonotprovide
proceduralguidanceorperformancemeasuresfortheseoffices.

TheGovernmentPerformanceandResultsActof1993institutedagovernmentwide
requirementthatagenciessetgoalsandreportannuallyonperformance.Accordingto
theGovernmentAccountabilityOffice(GAO),mostFederalagenciesnowuse
performancemeasurestotrackprogresstowardsgoals.1

Withoutstandardizedpolicies,procedures,andperformancemeasures,FEMAofficials,
attheirdiscretion,determinetheoveralloperationofLongTermRecoveryOffices.
FEMAregionalofficialssaidthatthefactorstheyconsiderindecidingtoopenorclosea
LongTermRecoveryOfficeinclude:thevolumeofIndividualAssistanceapplications
opened,PublicAssistanceprojectapplications,PublicAssistanceprojectrevisionsand
HazardMitigationprojectssubmitted;andtheamountofinsuranceclaimsanddollars
paid.WeaskedFEMAtoprovideuswithcopiesofthereportsitusedtodecidewhether
1

PerformanceMeasurementandEvaluation:DefinitionsandRelationships,GAO11
646SP,May2,2011.
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toopenorcloseaLongTermRecoveryOffice.Theywereabletoprovideuswithreports
showingdataFEMAassessedfortheclosure,butnottheestablishmentofLongTerm
RecoveryOffices.Inaddition,thesereportswerenotstandardizedandnoteveryregion
usedthem.FEMAofficialssaidthatthekeydecisionpointforestablishingandclosinga
LongTermRecoveryOfficerestsontheregionalofficialsdisasterknowledgefor
determiningtheneed,operation,andclosureoftheseoffices.FEMAalsosaidtheability
anddesireoftheaffectedStatetocloseoutdisasterrecoveryworkquicklyaffectsthe
operationsandclosureoftheLongTermRecoveryOffices.

AsaresultofusingthissubjectivedecisionmakingprocessandtheaffectedStates
abilityanddesiretocloseoutthedisaster,LongTermRecoveryOfficesremainopenfor
inconsistenttimeframes.Table1showsthat,asofOctober2013,FEMAhadopened
sevenLongTermRecoveryOfficesandhadclosedfour.

Table1:FEMALongTermRecoveryOffices,19942013
FEMA
Region

State

Opened

Closed/Status

RegionIV
RegionIV
RegionIV
RegionVI
RegionVI
RegionVII

Mississippi
Florida
Alabama
Texas
Louisiana
Iowa

4/2006
5/2005
6/2006
4/2006
5/2006
8/2009

RegionIX

California

1/1994

Open
1/2012
11/2009
2/2009
Open
10/2012
Transitionedto
anAreaField
Office2008

TOTALS

LTRO1
Agein
Months
90
79
40
33
89
37

Major
Disasters
Managed
1
7
1
2
4
1

167

TotalObligated
DisasterFunds*

Average#of
Staff

10,070,369,164
9,252,934,569
1,027,409,341
1,930,083,021
33,458,602,832
1,909,841,777

970
200
110
122
790
104

10

8,095,285,213

315

26

$65,744,525,917

Source:FEMAHeadquartersandFEMARegionIV,VI,VII,andIX;FEMADisasterFinancialStatusReports
fromAugust2013;andFEMAFinancialInformationToolReportsfromNovember2013
1
LongTermRecoveryOffice
*TotalObligatedDisasterFundsarecalculatedfromthetimeofthedisasterdeclarationuntildisaster
closureorOctober31,2013,whichevercamefirst.


InJanuary2014,FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane
Sandy,responsiblefortherecoveryeffortsinNewYorkandNewJersey.Hurricane
Sandyislikelytobeoneofthemostcostlydisastersinhistory.AsofJanuary2014,
FEMAhadalreadyobligatednearly$7billionindisasterfundsforHurricaneSandyin
NewYorkandNewJerseyandemployedover700staffforLongTermRecoveryOffices
inthosetwoStates.

FEMAofficialsrecognizethelackofstandardizedpolicies,procedures,andperformance
measuresforLongTermRecoveryOffices.Withoutthesecontrolsinplace,FEMAisat
riskformismanagementofFederaldisasterfundsandcannotensureconsistencyin
www.oig.dhs.gov

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OFFICE OF INSPECTOR GENERAL

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establishingandmanagingtheseoffices.However,severalFEMAregionalofficialssaid
theyhavedevelopedindividualpracticesfortheLongTermRecoveryOfficesusingtheir
knowledgeofdisasteroperationsandregionalofficecapabilities.Additionally,since
September2013,severalFEMAregionalofficesbegansharingtheirpracticeswithFEMA
RegionII,whichisresponsibleforHurricaneSandyrecoveryinNewJerseyandNew
York.Finally,before2008,FEMAheadquartersdevelopedadraftdirectiveoutlining
LongTermRecoveryOfficeoperations.However,FEMAheadquartersleadershiphas
notimplementedthatdirective.


Conclusion

FEMArisksmismanagingdisasterrelieffundsbecauseitdoesnottrackcostsor
performancedataandhasnotcreatedandimplementedstandardizedpolicies,
procedures,andperformancemeasuresforLongTermRecoveryOffices.Correcting
thesedeficiencieswillprovideFEMAtheinformationandguidanceitneedsto
determinewhetherLongTermRecoveryOfficesarecosteffective.Inaddition,FEMA
canbetterensureconsistencyinestablishingandmanagingtheseoffices.


Recommendations

WerecommendthattheAssociateAdministratorforResponseandRecovery,Federal
EmergencyManagementAgency:

Recommendation#1:Identify,track,andreportcostsandperformancedatathatshow
costeffectivenessforLongTermRecoveryOffices.

Recommendation#2:Implementstandardizedpolicies,procedures,andperformance
measurestoestablish,operate,andcloseLongTermRecoveryOffices.










www.oig.dhs.gov

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OFFICE OF INSPECTOR GENERAL

Department of Homeland Security

ManagementCommentsandOIGAnalysis

WereceivedandreviewedwrittencommentsonthedraftreportfromFEMAsAssociate
AdministratorforPolicy,ProgramAnalysisandInternationalAffairs.FEMAconcurswith
ourrecommendations.

BasedontheinformationFEMAprovided,weconsiderrecommendation#1asresolved
andopen.FEMAiscurrentlydeterminingthecosteffectivenessofvariousmodelsfor
postdisastercoordinationanddeliveryofassistance.Thisinitiativewillestablishcriteria
fordeterminingthecosteffectivenessandapplicabilityofonemodelversusanother
basedonhistoriccostdataandprojectionsofpotentialcostsavings.FEMAwillthen
developdecisionmakingguidanceforidentifying,tracking,andreportingontheneed
forandcosteffectivenessofLongTermRecoveryOfficesversustransitioningsupportto
theFEMARegionorotheroptions.FEMAsestimatedcompletiondateisMarch31,
2015.

BasedontheinformationFEMAprovided,wealsoconsiderrecommendation#2as
resolvedandopen.FEMAiscurrentlydocumentingtheprocess,procedures,
performancemeasures,lessonslearned,andbestpracticesusedtoscopeandestablish
theSandyRecoveryOffice.TheSandyRecoveryOfficeapproachandOIGfindingswill
assisttheFEMAinitiativetoupdateandimplementpreviouslydevelopeddraft
guidance,procedures,andperformancemeasurestoestablish,operate,andcloseLong
TermRecoveryOffices.FEMAsestimatedcompletiondateisMarch31,2015.

AppendixBincludesacopyofthemanagementcommentsintheirentirety.




www.oig.dhs.gov

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OFFICE OF INSPECTOR GENERAL

Department of Homeland Security

AppendixA
Objectives,Scope,andMethodology

TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was
establishedbytheHomelandSecurityActof2002(PublicLaw107296)byamendment
totheInspectorGeneralActof1978.Thisisoneofaseriesofaudit,inspection,and
specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy,
efficiency,andeffectivenesswithintheDepartment.

TheobjectiveofthisauditwastodeterminewhetherFEMAspolicies,procedures,and
performancemeasuresforestablishing,operating,andclosingLongTermRecovery
OfficesmeetFederalstatutesandareconsistentlyapplied.

WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA
RegionsIV,VI,VII,andIX;reviewedFederalstatutesandregulationsanddraftFEMA
policiesandprocedures;analyzeddisastercostdataforthedisastersmanagedbythe
sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013.
Usingthedisastercostdata,weestimatedtheLongTermRecoveryOfficesoperating
costs.Forthis,weusedtheoveralldisasteroperationsobligationsandexpendituresand
eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery
Offices.Wethenadjustedthosecostsandobligationstoreflecttheestimatedcost
attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober
2013.WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor
HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery
Offices;andperformedotherproceduresconsiderednecessarytoaccomplishour
objective.

WedidnotassesstheadequacyoftheagencysinternalcontrolsapplicabletoLong
TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit
objectives.

WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto
theInspectorGeneralActof1978,asamended,andaccordingtogenerallyaccepted
governmentauditingstandards.Thosestandardsrequirethatweplanandperformthe
audittoobtainsufficient,appropriateevidencetoprovideareasonablebasisforour
findingsandconclusionsbaseduponourauditobjectives.Webelievethattheevidence
obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour
auditobjectives.


www.oig.dhs.gov

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Department of Homeland Security

AppendixB

ManagementCommentstotheDraftLetterReport

www.oig.dhs.gov

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Department of Homeland Security

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Department of Homeland Security

AppendixC
ReportDistribution

DepartmentofHomelandSecurity

Secretary
DeputySecretary
ChiefofStaff
DeputyChiefofStaff
GeneralCounsel
ExecutiveSecretary
Director,GAO/OIGLiaisonOffice
AssistantSecretaryforOfficeofPolicy
AssistantSecretaryforOfficeofPublicAffairs
AssistantSecretaryforOfficeofLegislativeAffairs
DHSComponentLiaison
ChiefPrivacyOfficer

FederalEmergencyManagementAgency


Administrator
ChiefofStaff
AssociateAdministrator,ResponseandRecovery
Director,OfficeofRegionalOperations
ChiefFinancialOfficer
AssociateAdministratorforPolicyandProgramAnalysis
Director,ProgramAnalysisandEvaluationDivision
Director,RiskManagementandCompliance
OIGPortfolioManager,OfficeofPolicyandProgramAnalysis

OfficeofManagementandBudget

Chief,HomelandSecurityBranch
DHSOIGBudgetExaminer

RecoveryAccountabilityandTransparencyBoard

Director,Investigations,RecoveryAccountabilityandTransparencyBoard



www.oig.dhs.gov

12

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OFFICE OF INSPECTOR GENERAL

Department of Homeland Security

Congress

CongressionalOversightandAppropriationsCommittees



www.oig.dhs.gov

13

OIG1506D

ADDITIONAL INFORMATION AND COPIES

To view this and any of our other reports, please visit our website at: www.oig.dhs.gov.
For further information or questions, please contact Office of Inspector General Public Affairs
at: DHS-OIG.OfficePublicAffairs@oig.dhs.gov. Follow us on Twitter at: @dhsoig.

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hotline at (202) 254-4297, or write to us at:
Department of Homeland Security
Office of Inspector General, Mail Stop 0305
Attention: Hotline
245 Murray Drive, SW
Washington, DC 20528-0305