oig-15-06-d - fema needs to track performance data and … · 2016. 11. 8. · oig-15-06-d ....
TRANSCRIPT
FEMA Needs To Track Performance Data and Develop Policies Procedures and Performance Measures for Long Term Recovery Offices
October 30 2014 OIG-15-06-D
HIGHLIGHTS
FEMANeedstoTrackPerformanceDataand DevelopPoliciesProceduresandPerformance
MeasuresforLongTermRecoveryOffices
October302014
WhyWeDid This Between1994and2013FEMA operatedsevenLongTerm RecoveryOfficesFEMA obligatedandspentmorethan $4billioninadministrativecosts andmorethan$1billionin salariesfortheseoffices
Ourauditobjectivewasto determinewhetherFEMArsquos policiesproceduresand performancemeasuresfor establishingoperatingand closingLongTermRecovery OfficesmeetFederalstatutes andareconsistentlyapplied
WhatWe Recommend Wemadetwo recommendationstoFEMA thatwhenimplementedwill allowFEMAtomanageLong TermRecoveryOfficesmore consistentlyandeffectively ForFurtherInformation ContactourOfficeofPublicAffairsat (202)254Ͳ4100oremailusat DHSͲOIGOfficePublicAffairsoigdhsgov
WhatWeFound FEMAdoesnottrackcostsordataassociatedwith performancemeasuresforLongTermRecoveryOffices WithouttrackingcostsordataFEMAcannotdetermine whethertheseofficesarecosteffectiveFEMAestablishes operatesandclosesLongTermRecoveryOfficeswithout standardizedpoliciesproceduresandperformance measuresWithoutthesecontrolsinplaceFEMAisatriskfor mismanagementofFederaldisasterfundsandcannotensure consistencyinestablishingandmanagingtheseoffices CorrectingthesedeficiencieswillprovideFEMAthe informationandguidanceitneedstodeterminewhether LongTermRecoveryOfficesarecosteffectiveInaddition FEMAcanbetterensureconsistencyinestablishingand managingtheseoffices
FEMAResponse FEMAconcurswithourrecommendationsFEMAplansto determinethecosteffectivenessofvariousmodelsfor managingLongTermRecoveryOfficesThesemodelswill examinepostͲdisastercoordinationanddeliveryofdisaster assistancetoassistFEMAindevelopingdecisionͲmaking guidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessoftheseofficesFEMAiscurrently documentingtheprocessproceduresperformance measureslessonslearnedandbestpracticesusedtoscope andestablishtheSandyRecoveryOfficeFEMAswritten responsetousforthisreportisduein90days
wwwoigdhsgov OIG-15-06-D
OEpA kf~r
~ `x ~~~-`-~ sti-`J4
OFFICE OF INSPECTOR GENERALDepartment of Homeland Security
Washington DC 20528
OCT 3 Q 214
MEMORANDUM FOR Elizabeth Zimmerman
Associa inistrator Response and Recovery
Fede I Emer ncy Management Agency
~~ vFROM John V
Assis In 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 TrackPerformance 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 Basedon information you provided in the response to the draft report we consider therecommendations resolved with a target completion date of March 31 2015 Once youroffice has fully implemented the recommendations please submit a formal close-outletter to us within 30 days so that we may close the recommendations The requestshould 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 ofEmergency Management Oversight at OIGEMOFoliowupoi~dhsgov
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 postthe report on our website for public dissemination
Major contributors to this report are Kaye McTighe Director Headquarters OfficeNigel Gardner Audit Manager Christine Alvarez Auditor-in-Charge andKimberly Letnaunchyn Program Analyst
wwwoigdhsgov QIG-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
wwwoigdhsgov 2 OIG-15-06-D
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Background
WhenthePresidentdeclaresaFederaldisastertheFederalEmergencyManagement Agency(FEMA)RegionalOfficethatservicestheaffectedStateisresponsiblefor responseandrecoveryeffortsTheRegionalOfficeopensaJointFieldOfficeto coordinateeffortswithitsdisasterpartnersWhenaJointFieldOfficeclosesthe disasterprogramsusuallytransferbacktotheRegionalOfficeIncaseswhereStateand localcommunityofficialsbusinessesandcitizensneedadditionalrecoveryassistance FEMAmayopenaLongTermRecoveryOfficeTheseofficesopenbecausethesize severityorthenumberofdisastersoverwhelmstheRegionalOfficeFigure1showsthe progressionofthedisasterresponseandrecoveryresponsibilitythroughFEMA
Figure1DisasterFlowchart
Disaster Declaration
RegionBegins Response
JointField OfficeOpens
JointField OfficeCloses
Region Continues Response
CanRegion Resume
Responsibilityof Disaster
LongTerm Recovery
OfficeOpens
LongTerm Recovery
OfficeCloses
Yes
No
No
Yes
Region Resumes
Responsibility forDisaster
Source DHS OIG
ThestructureofLongTermRecoveryOfficesinpartmirrorsdivisionswithinthe RegionalandJointFieldOfficestoensureasmoothtransitionbackintoregional operationsForexampleeachofficehasLogisticsFinanceandOperationsDivisions ResultsofAudit Weestimatethatbetween1994and2013FEMAobligatedandspentmorethan $4billioninadministrativecostsandmorethan$1billioninsalariesforthesevenLong TermRecoveryOfficesTheseofficeswereresponsiblefor26majordisaster declarationstotaling$66billioninobligatedfundsHoweverFEMAdoesnottrackcosts
wwwoigdhsgov 3 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
orperformancedatafortheseofficesAsaresultFEMAcannotdeterminethecost effectivenessofLongTermRecoveryOfficeoperationsInadditionFEMAhasnot createdstandardizedpoliciesproceduresandperformancemeasuresforLongTerm RecoveryOfficeoperationsWithoutthemFEMAcannotensureconsistencyin establishingandmanagingtheseoffices InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyFederal spendingforHurricaneSandywilllikelysurpassallbutonepreviousdisaster(Hurricane Katrina)ThereforeitisimperativethatFEMAshould(1)identifytrackandreport performancedatathatshowscosteffectivenessforLongTermRecoveryOfficesand (2)implementstandardizedpoliciesproceduresandperformancemeasuresto establishoperateandcloseLongTermRecoveryOffices FEMADoesNotTrackLongTermRecoveryOfficeCostsorPerformanceData FEMAdoesnottrackcostsordataassociatedwithperformancemeasuresforLongTerm RecoveryOfficesWithouttrackingcostsordataFEMAcannotdeterminewhetherLong TermRecoveryOfficesarecosteffective Costs FEMAcouldnotverifythecostsofeachLongTermRecoveryOfficeTheFederal ManagersFinancialIntegrityActof1982(Act)inpartrequiresthatFederalagencies properlyrecordandaccountforrevenuesandexpendituresapplicabletoagency operationstomaintainaccountabilityfortheirassetsFEMAassertsthatitisnotin violationofthisActbecauseFEMArsquosfinancialsystemtracksoveralldisastercosts HoweverFEMAcouldnotprovidethecostsbylocationTofullyaccomplishthegoalof theActFEMAshouldbetrackingthecostsforeachLongTermRecoveryOffice FEMAprovidedtheoveralldisastercostsrelatedtosevenLongTermRecoveryOffices WeworkedwithFEMAtoanalyzethesecostsandmutuallyagreedtoestimatethat FEMAobligatedandspentmorethan$4billioninadministrativecostsandmorethan$1 billioninsalariesforthesevenofficesWithouttrackingcostsFEMAisunableto determinewhetherLongTermRecoveryOfficeoperationsarecosteffectiveFurther FEMAneedstotrackimportantdatasuchasofficespendingdisasterprogram workloadandnumberofLongTermRecoverypersonneltodetermineeconomiesof scale
wwwoigdhsgov 4 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
DataAssociatedwithPerformanceMeasures InadditionFEMAisnottrackingdataassociatedwithperformancemeasures Performancemeasurementistheongoingmonitoringandreportingofprogram accomplishmentsparticularlyprogresstowardpreͲestablishedgoalsPerformance measuresmayaddress(1)thetypeorlevelofprogramactivitiesconducted(process) (2)thedirectproductsandservicesaprogramdelivers(outputs)or(3)theresultsof thoseproductsandservices(outcomes)WithouttrackingsuchdataFEMAcannot determinewhethertheeconomiesofscalearecosteffective ForexampleFEMAmirrorsitsLongTermRecoveryOfficesinpartaftertheoperations intheRegionalandJointFieldOfficesAllthreeofficetypeshaveLogisticsFinancialand OperationsDivisionsTheseparalleldivisionsexisttoallowforasmoothtransitionof disasteroperationsbacktotheRegionalOfficewhenRegionalofficialsdecidetheyno longerneedaLongTermRecoveryOffice FEMANeedsStandardizedPoliciesProceduresandPerformanceMeasuresforLong TermRecoveryOffices FEMAestablishesoperatesandclosesLongTermRecoveryOfficeswithout standardizedpoliciesproceduresandperformancemeasuresTwoFederalstatutes theRobertTStaffordDisasterReliefandEmergencyAssistanceActandPostͲKatrina EmergencyManagementReformActof2006authorizeFEMAtoestablishfieldoffices includingLongTermRecoveryOfficesHoweverthesestatutesdonotprovide proceduralguidanceorperformancemeasuresfortheseoffices TheGovernmentPerformanceandResultsActof1993institutedagovernmentͲwide requirementthatagenciessetgoalsandreportannuallyonperformanceAccordingto theGovernmentAccountabilityOffice(GAO)mostFederalagenciesnowuse performancemeasurestotrackprogresstowardsgoals1 WithoutstandardizedpoliciesproceduresandperformancemeasuresFEMAofficials attheirdiscretiondeterminetheoveralloperationofLongTermRecoveryOffices FEMAregionalofficialssaidthatthefactorstheyconsiderindecidingtoopenorclosea LongTermRecoveryOfficeincludethevolumeofIndividualAssistanceapplications openedPublicAssistanceprojectapplicationsPublicAssistanceprojectrevisionsand HazardMitigationprojectssubmittedandtheamountofinsuranceclaimsanddollars paidWeaskedFEMAtoprovideuswithcopiesofthereportsitusedtodecidewhether
1PerformanceMeasurementandEvaluationDefinitionsandRelationshipsGAOͲ11Ͳ 646SPMay22011
wwwoigdhsgov 5 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
toopenorcloseaLongTermRecoveryOfficeTheywereabletoprovideuswithreports showingdataFEMAassessedfortheclosurebutnottheestablishmentofLongTerm RecoveryOfficesInadditionthesereportswerenotstandardizedandnoteveryregion usedthemFEMAofficialssaidthatthekeydecisionpointforestablishingandclosinga LongTermRecoveryOfficerestsontheregionalofficialsrsquoldquodisasterknowledgerdquofor determiningtheneedoperationandclosureoftheseofficesFEMAalsosaidtheability anddesireoftheaffectedStatetocloseoutdisasterrecoveryworkquicklyaffectsthe operationsandclosureoftheLongTermRecoveryOffices AsaresultofusingthissubjectivedecisionͲmakingprocessandtheaffectedStatesrsquo abilityanddesiretocloseoutthedisasterLongTermRecoveryOfficesremainopenfor inconsistenttimeframesTable1showsthatasofOctober2013FEMAhadopened sevenLongTermRecoveryOfficesandhadclosedfour Table1FEMALongTermRecoveryOffices1994ndash2013
FEMA Region State Opened ClosedStatus
LTRO1 Agein Months
Major Disasters Managed
TotalObligated DisasterFunds
Averageof Staff
RegionIV Mississippi 42006 Open 90 1 10070369164 970 RegionIV Florida 52005 12012 79 7 9252934569 200 RegionIV Alabama 62006 112009 40 1 1027409341 110 RegionVI Texas 42006 22009 33 2 1930083021 122 RegionVI Louisiana 52006 Open 89 4 33458602832 790 RegionVII Iowa 82009 102012 37 1 1909841777 104
RegionIX California 11994 Transitionedto anAreaField OfficeͲ2008
167 10 8095285213 315
TOTALS 26 $65744525917
SourceFEMAHeadquartersandFEMARegionIVVIVIIandIXFEMADisasterFinancialStatusReports fromAugust2013andFEMAFinancialInformationToolReportsfromNovember2013 1LongTermRecoveryOffice TotalObligatedDisasterFundsarecalculatedfromthetimeofthedisasterdeclarationuntildisaster closureorOctober312013whichevercamefirst InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyHurricane SandyislikelytobeoneofthemostcostlydisastersinhistoryAsofJanuary2014 FEMAhadalreadyobligatednearly$7billionindisasterfundsforHurricaneSandyin NewYorkandNewJerseyandemployedover700staffforLongTermRecoveryOffices inthosetwoStates FEMAofficialsrecognizethelackofstandardizedpoliciesproceduresandperformance measuresforLongTermRecoveryOfficesWithoutthesecontrolsinplaceFEMAisat riskformismanagementofFederaldisasterfundsandcannotensureconsistencyin
wwwoigdhsgov 6 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
establishingandmanagingtheseofficesHoweverseveralFEMAregionalofficialssaid theyhavedevelopedindividualpracticesfortheLongTermRecoveryOfficesusingtheir knowledgeofdisasteroperationsandregionalofficecapabilitiesAdditionallysince September2013severalFEMAregionalofficesbegansharingtheirpracticeswithFEMA RegionIIwhichisresponsibleforHurricaneSandyrecoveryinNewJerseyandNew YorkFinallybefore2008FEMAheadquartersdevelopedadraftdirectiveoutlining LongTermRecoveryOfficeoperationsHoweverFEMAheadquartersrsquoleadershiphas notimplementedthatdirective Conclusion FEMArisksmismanagingdisasterrelieffundsbecauseitdoesnottrackcostsor performancedataandhasnotcreatedandimplementedstandardizedpolicies proceduresandperformancemeasuresforLongTermRecoveryOfficesCorrecting thesedeficiencieswillprovideFEMAtheinformationandguidanceitneedsto determinewhetherLongTermRecoveryOfficesarecosteffectiveInadditionFEMA canbetterensureconsistencyinestablishingandmanagingtheseoffices
Recommendations
WerecommendthattheAssociateAdministratorforResponseandRecoveryFederal EmergencyManagementAgency Recommendation1Identifytrackandreportcostsandperformancedatathatshow costeffectivenessforLongTermRecoveryOffices Recommendation2Implementstandardizedpoliciesproceduresandperformance measurestoestablishoperateandcloseLongTermRecoveryOffices
wwwoigdhsgov 7 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ManagementCommentsandOIGAnalysis WereceivedandreviewedwrittencommentsonthedraftreportfromFEMArsquosAssociate AdministratorforPolicyProgramAnalysisandInternationalAffairsFEMAconcurswith ourrecommendations BasedontheinformationFEMAprovidedweconsiderrecommendation1asresolved andopenFEMAiscurrentlydeterminingthecosteffectivenessofvariousmodelsfor postͲdisastercoordinationanddeliveryofassistanceThisinitiativewillestablishcriteria fordeterminingthecosteffectivenessandapplicabilityofonemodelversusanother basedonhistoriccostdataandprojectionsofpotentialcostsavingsFEMAwillthen developdecisionͲmakingguidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessofLongTermRecoveryOfficesversustransitioningsupportto theFEMARegionorotheroptionsFEMArsquosestimatedcompletiondateisMarch31 2015 BasedontheinformationFEMAprovidedwealsoconsiderrecommendation2as resolvedandopenFEMAiscurrentlydocumentingtheprocessprocedures performancemeasureslessonslearnedandbestpracticesusedtoscopeandestablish theSandyRecoveryOfficeTheSandyRecoveryOfficeapproachandOIGfindingswill assisttheFEMAinitiativetoupdateandimplementpreviouslydevelopeddraft guidanceproceduresandperformancemeasurestoestablishoperateandcloseLong TermRecoveryOfficesFEMArsquosestimatedcompletiondateisMarch312015 AppendixBincludesacopyofthemanagementcommentsintheirentirety
wwwoigdhsgov 8 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment TheobjectiveofthisauditwastodeterminewhetherFEMArsquospoliciesproceduresand performancemeasuresforestablishingoperatingandclosingLongTermRecovery OfficesmeetFederalstatutesandareconsistentlyapplied WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA RegionsIVVIVIIandIXreviewedFederalstatutesandregulationsanddraftFEMA policiesandproceduresanalyzeddisastercostdataforthedisastersmanagedbythe sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013 UsingthedisastercostdataweestimatedtheLongTermRecoveryOfficesoperating costsForthisweusedtheoveralldisasteroperationsobligationsandexpendituresand eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery OfficesWethenadjustedthosecostsandobligationstoreflecttheestimatedcost attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober 2013WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery Officesandperformedotherproceduresconsiderednecessarytoaccomplishour objective WedidnotassesstheadequacyoftheagencyrsquosinternalcontrolsapplicabletoLong TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit objectives WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectivesWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectives
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OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
HIGHLIGHTS
FEMANeedstoTrackPerformanceDataand DevelopPoliciesProceduresandPerformance
MeasuresforLongTermRecoveryOffices
October302014
WhyWeDid This Between1994and2013FEMA operatedsevenLongTerm RecoveryOfficesFEMA obligatedandspentmorethan $4billioninadministrativecosts andmorethan$1billionin salariesfortheseoffices
Ourauditobjectivewasto determinewhetherFEMArsquos policiesproceduresand performancemeasuresfor establishingoperatingand closingLongTermRecovery OfficesmeetFederalstatutes andareconsistentlyapplied
WhatWe Recommend Wemadetwo recommendationstoFEMA thatwhenimplementedwill allowFEMAtomanageLong TermRecoveryOfficesmore consistentlyandeffectively ForFurtherInformation ContactourOfficeofPublicAffairsat (202)254Ͳ4100oremailusat DHSͲOIGOfficePublicAffairsoigdhsgov
WhatWeFound FEMAdoesnottrackcostsordataassociatedwith performancemeasuresforLongTermRecoveryOffices WithouttrackingcostsordataFEMAcannotdetermine whethertheseofficesarecosteffectiveFEMAestablishes operatesandclosesLongTermRecoveryOfficeswithout standardizedpoliciesproceduresandperformance measuresWithoutthesecontrolsinplaceFEMAisatriskfor mismanagementofFederaldisasterfundsandcannotensure consistencyinestablishingandmanagingtheseoffices CorrectingthesedeficiencieswillprovideFEMAthe informationandguidanceitneedstodeterminewhether LongTermRecoveryOfficesarecosteffectiveInaddition FEMAcanbetterensureconsistencyinestablishingand managingtheseoffices
FEMAResponse FEMAconcurswithourrecommendationsFEMAplansto determinethecosteffectivenessofvariousmodelsfor managingLongTermRecoveryOfficesThesemodelswill examinepostͲdisastercoordinationanddeliveryofdisaster assistancetoassistFEMAindevelopingdecisionͲmaking guidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessoftheseofficesFEMAiscurrently documentingtheprocessproceduresperformance measureslessonslearnedandbestpracticesusedtoscope andestablishtheSandyRecoveryOfficeFEMAswritten responsetousforthisreportisduein90days
wwwoigdhsgov OIG-15-06-D
OEpA kf~r
~ `x ~~~-`-~ sti-`J4
OFFICE OF INSPECTOR GENERALDepartment of Homeland Security
Washington DC 20528
OCT 3 Q 214
MEMORANDUM FOR Elizabeth Zimmerman
Associa inistrator Response and Recovery
Fede I Emer ncy Management Agency
~~ vFROM John V
Assis In 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 TrackPerformance 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 Basedon information you provided in the response to the draft report we consider therecommendations resolved with a target completion date of March 31 2015 Once youroffice has fully implemented the recommendations please submit a formal close-outletter to us within 30 days so that we may close the recommendations The requestshould 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 ofEmergency Management Oversight at OIGEMOFoliowupoi~dhsgov
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 postthe report on our website for public dissemination
Major contributors to this report are Kaye McTighe Director Headquarters OfficeNigel Gardner Audit Manager Christine Alvarez Auditor-in-Charge andKimberly Letnaunchyn Program Analyst
wwwoigdhsgov QIG-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
wwwoigdhsgov 2 OIG-15-06-D
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Background
WhenthePresidentdeclaresaFederaldisastertheFederalEmergencyManagement Agency(FEMA)RegionalOfficethatservicestheaffectedStateisresponsiblefor responseandrecoveryeffortsTheRegionalOfficeopensaJointFieldOfficeto coordinateeffortswithitsdisasterpartnersWhenaJointFieldOfficeclosesthe disasterprogramsusuallytransferbacktotheRegionalOfficeIncaseswhereStateand localcommunityofficialsbusinessesandcitizensneedadditionalrecoveryassistance FEMAmayopenaLongTermRecoveryOfficeTheseofficesopenbecausethesize severityorthenumberofdisastersoverwhelmstheRegionalOfficeFigure1showsthe progressionofthedisasterresponseandrecoveryresponsibilitythroughFEMA
Figure1DisasterFlowchart
Disaster Declaration
RegionBegins Response
JointField OfficeOpens
JointField OfficeCloses
Region Continues Response
CanRegion Resume
Responsibilityof Disaster
LongTerm Recovery
OfficeOpens
LongTerm Recovery
OfficeCloses
Yes
No
No
Yes
Region Resumes
Responsibility forDisaster
Source DHS OIG
ThestructureofLongTermRecoveryOfficesinpartmirrorsdivisionswithinthe RegionalandJointFieldOfficestoensureasmoothtransitionbackintoregional operationsForexampleeachofficehasLogisticsFinanceandOperationsDivisions ResultsofAudit Weestimatethatbetween1994and2013FEMAobligatedandspentmorethan $4billioninadministrativecostsandmorethan$1billioninsalariesforthesevenLong TermRecoveryOfficesTheseofficeswereresponsiblefor26majordisaster declarationstotaling$66billioninobligatedfundsHoweverFEMAdoesnottrackcosts
wwwoigdhsgov 3 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
orperformancedatafortheseofficesAsaresultFEMAcannotdeterminethecost effectivenessofLongTermRecoveryOfficeoperationsInadditionFEMAhasnot createdstandardizedpoliciesproceduresandperformancemeasuresforLongTerm RecoveryOfficeoperationsWithoutthemFEMAcannotensureconsistencyin establishingandmanagingtheseoffices InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyFederal spendingforHurricaneSandywilllikelysurpassallbutonepreviousdisaster(Hurricane Katrina)ThereforeitisimperativethatFEMAshould(1)identifytrackandreport performancedatathatshowscosteffectivenessforLongTermRecoveryOfficesand (2)implementstandardizedpoliciesproceduresandperformancemeasuresto establishoperateandcloseLongTermRecoveryOffices FEMADoesNotTrackLongTermRecoveryOfficeCostsorPerformanceData FEMAdoesnottrackcostsordataassociatedwithperformancemeasuresforLongTerm RecoveryOfficesWithouttrackingcostsordataFEMAcannotdeterminewhetherLong TermRecoveryOfficesarecosteffective Costs FEMAcouldnotverifythecostsofeachLongTermRecoveryOfficeTheFederal ManagersFinancialIntegrityActof1982(Act)inpartrequiresthatFederalagencies properlyrecordandaccountforrevenuesandexpendituresapplicabletoagency operationstomaintainaccountabilityfortheirassetsFEMAassertsthatitisnotin violationofthisActbecauseFEMArsquosfinancialsystemtracksoveralldisastercosts HoweverFEMAcouldnotprovidethecostsbylocationTofullyaccomplishthegoalof theActFEMAshouldbetrackingthecostsforeachLongTermRecoveryOffice FEMAprovidedtheoveralldisastercostsrelatedtosevenLongTermRecoveryOffices WeworkedwithFEMAtoanalyzethesecostsandmutuallyagreedtoestimatethat FEMAobligatedandspentmorethan$4billioninadministrativecostsandmorethan$1 billioninsalariesforthesevenofficesWithouttrackingcostsFEMAisunableto determinewhetherLongTermRecoveryOfficeoperationsarecosteffectiveFurther FEMAneedstotrackimportantdatasuchasofficespendingdisasterprogram workloadandnumberofLongTermRecoverypersonneltodetermineeconomiesof scale
wwwoigdhsgov 4 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
DataAssociatedwithPerformanceMeasures InadditionFEMAisnottrackingdataassociatedwithperformancemeasures Performancemeasurementistheongoingmonitoringandreportingofprogram accomplishmentsparticularlyprogresstowardpreͲestablishedgoalsPerformance measuresmayaddress(1)thetypeorlevelofprogramactivitiesconducted(process) (2)thedirectproductsandservicesaprogramdelivers(outputs)or(3)theresultsof thoseproductsandservices(outcomes)WithouttrackingsuchdataFEMAcannot determinewhethertheeconomiesofscalearecosteffective ForexampleFEMAmirrorsitsLongTermRecoveryOfficesinpartaftertheoperations intheRegionalandJointFieldOfficesAllthreeofficetypeshaveLogisticsFinancialand OperationsDivisionsTheseparalleldivisionsexisttoallowforasmoothtransitionof disasteroperationsbacktotheRegionalOfficewhenRegionalofficialsdecidetheyno longerneedaLongTermRecoveryOffice FEMANeedsStandardizedPoliciesProceduresandPerformanceMeasuresforLong TermRecoveryOffices FEMAestablishesoperatesandclosesLongTermRecoveryOfficeswithout standardizedpoliciesproceduresandperformancemeasuresTwoFederalstatutes theRobertTStaffordDisasterReliefandEmergencyAssistanceActandPostͲKatrina EmergencyManagementReformActof2006authorizeFEMAtoestablishfieldoffices includingLongTermRecoveryOfficesHoweverthesestatutesdonotprovide proceduralguidanceorperformancemeasuresfortheseoffices TheGovernmentPerformanceandResultsActof1993institutedagovernmentͲwide requirementthatagenciessetgoalsandreportannuallyonperformanceAccordingto theGovernmentAccountabilityOffice(GAO)mostFederalagenciesnowuse performancemeasurestotrackprogresstowardsgoals1 WithoutstandardizedpoliciesproceduresandperformancemeasuresFEMAofficials attheirdiscretiondeterminetheoveralloperationofLongTermRecoveryOffices FEMAregionalofficialssaidthatthefactorstheyconsiderindecidingtoopenorclosea LongTermRecoveryOfficeincludethevolumeofIndividualAssistanceapplications openedPublicAssistanceprojectapplicationsPublicAssistanceprojectrevisionsand HazardMitigationprojectssubmittedandtheamountofinsuranceclaimsanddollars paidWeaskedFEMAtoprovideuswithcopiesofthereportsitusedtodecidewhether
1PerformanceMeasurementandEvaluationDefinitionsandRelationshipsGAOͲ11Ͳ 646SPMay22011
wwwoigdhsgov 5 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
toopenorcloseaLongTermRecoveryOfficeTheywereabletoprovideuswithreports showingdataFEMAassessedfortheclosurebutnottheestablishmentofLongTerm RecoveryOfficesInadditionthesereportswerenotstandardizedandnoteveryregion usedthemFEMAofficialssaidthatthekeydecisionpointforestablishingandclosinga LongTermRecoveryOfficerestsontheregionalofficialsrsquoldquodisasterknowledgerdquofor determiningtheneedoperationandclosureoftheseofficesFEMAalsosaidtheability anddesireoftheaffectedStatetocloseoutdisasterrecoveryworkquicklyaffectsthe operationsandclosureoftheLongTermRecoveryOffices AsaresultofusingthissubjectivedecisionͲmakingprocessandtheaffectedStatesrsquo abilityanddesiretocloseoutthedisasterLongTermRecoveryOfficesremainopenfor inconsistenttimeframesTable1showsthatasofOctober2013FEMAhadopened sevenLongTermRecoveryOfficesandhadclosedfour Table1FEMALongTermRecoveryOffices1994ndash2013
FEMA Region State Opened ClosedStatus
LTRO1 Agein Months
Major Disasters Managed
TotalObligated DisasterFunds
Averageof Staff
RegionIV Mississippi 42006 Open 90 1 10070369164 970 RegionIV Florida 52005 12012 79 7 9252934569 200 RegionIV Alabama 62006 112009 40 1 1027409341 110 RegionVI Texas 42006 22009 33 2 1930083021 122 RegionVI Louisiana 52006 Open 89 4 33458602832 790 RegionVII Iowa 82009 102012 37 1 1909841777 104
RegionIX California 11994 Transitionedto anAreaField OfficeͲ2008
167 10 8095285213 315
TOTALS 26 $65744525917
SourceFEMAHeadquartersandFEMARegionIVVIVIIandIXFEMADisasterFinancialStatusReports fromAugust2013andFEMAFinancialInformationToolReportsfromNovember2013 1LongTermRecoveryOffice TotalObligatedDisasterFundsarecalculatedfromthetimeofthedisasterdeclarationuntildisaster closureorOctober312013whichevercamefirst InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyHurricane SandyislikelytobeoneofthemostcostlydisastersinhistoryAsofJanuary2014 FEMAhadalreadyobligatednearly$7billionindisasterfundsforHurricaneSandyin NewYorkandNewJerseyandemployedover700staffforLongTermRecoveryOffices inthosetwoStates FEMAofficialsrecognizethelackofstandardizedpoliciesproceduresandperformance measuresforLongTermRecoveryOfficesWithoutthesecontrolsinplaceFEMAisat riskformismanagementofFederaldisasterfundsandcannotensureconsistencyin
wwwoigdhsgov 6 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
establishingandmanagingtheseofficesHoweverseveralFEMAregionalofficialssaid theyhavedevelopedindividualpracticesfortheLongTermRecoveryOfficesusingtheir knowledgeofdisasteroperationsandregionalofficecapabilitiesAdditionallysince September2013severalFEMAregionalofficesbegansharingtheirpracticeswithFEMA RegionIIwhichisresponsibleforHurricaneSandyrecoveryinNewJerseyandNew YorkFinallybefore2008FEMAheadquartersdevelopedadraftdirectiveoutlining LongTermRecoveryOfficeoperationsHoweverFEMAheadquartersrsquoleadershiphas notimplementedthatdirective Conclusion FEMArisksmismanagingdisasterrelieffundsbecauseitdoesnottrackcostsor performancedataandhasnotcreatedandimplementedstandardizedpolicies proceduresandperformancemeasuresforLongTermRecoveryOfficesCorrecting thesedeficiencieswillprovideFEMAtheinformationandguidanceitneedsto determinewhetherLongTermRecoveryOfficesarecosteffectiveInadditionFEMA canbetterensureconsistencyinestablishingandmanagingtheseoffices
Recommendations
WerecommendthattheAssociateAdministratorforResponseandRecoveryFederal EmergencyManagementAgency Recommendation1Identifytrackandreportcostsandperformancedatathatshow costeffectivenessforLongTermRecoveryOffices Recommendation2Implementstandardizedpoliciesproceduresandperformance measurestoestablishoperateandcloseLongTermRecoveryOffices
wwwoigdhsgov 7 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ManagementCommentsandOIGAnalysis WereceivedandreviewedwrittencommentsonthedraftreportfromFEMArsquosAssociate AdministratorforPolicyProgramAnalysisandInternationalAffairsFEMAconcurswith ourrecommendations BasedontheinformationFEMAprovidedweconsiderrecommendation1asresolved andopenFEMAiscurrentlydeterminingthecosteffectivenessofvariousmodelsfor postͲdisastercoordinationanddeliveryofassistanceThisinitiativewillestablishcriteria fordeterminingthecosteffectivenessandapplicabilityofonemodelversusanother basedonhistoriccostdataandprojectionsofpotentialcostsavingsFEMAwillthen developdecisionͲmakingguidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessofLongTermRecoveryOfficesversustransitioningsupportto theFEMARegionorotheroptionsFEMArsquosestimatedcompletiondateisMarch31 2015 BasedontheinformationFEMAprovidedwealsoconsiderrecommendation2as resolvedandopenFEMAiscurrentlydocumentingtheprocessprocedures performancemeasureslessonslearnedandbestpracticesusedtoscopeandestablish theSandyRecoveryOfficeTheSandyRecoveryOfficeapproachandOIGfindingswill assisttheFEMAinitiativetoupdateandimplementpreviouslydevelopeddraft guidanceproceduresandperformancemeasurestoestablishoperateandcloseLong TermRecoveryOfficesFEMArsquosestimatedcompletiondateisMarch312015 AppendixBincludesacopyofthemanagementcommentsintheirentirety
wwwoigdhsgov 8 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment TheobjectiveofthisauditwastodeterminewhetherFEMArsquospoliciesproceduresand performancemeasuresforestablishingoperatingandclosingLongTermRecovery OfficesmeetFederalstatutesandareconsistentlyapplied WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA RegionsIVVIVIIandIXreviewedFederalstatutesandregulationsanddraftFEMA policiesandproceduresanalyzeddisastercostdataforthedisastersmanagedbythe sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013 UsingthedisastercostdataweestimatedtheLongTermRecoveryOfficesoperating costsForthisweusedtheoveralldisasteroperationsobligationsandexpendituresand eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery OfficesWethenadjustedthosecostsandobligationstoreflecttheestimatedcost attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober 2013WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery Officesandperformedotherproceduresconsiderednecessarytoaccomplishour objective WedidnotassesstheadequacyoftheagencyrsquosinternalcontrolsapplicabletoLong TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit objectives WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectivesWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectives
wwwoigdhsgov 9 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OEpA kf~r
~ `x ~~~-`-~ sti-`J4
OFFICE OF INSPECTOR GENERALDepartment of Homeland Security
Washington DC 20528
OCT 3 Q 214
MEMORANDUM FOR Elizabeth Zimmerman
Associa inistrator Response and Recovery
Fede I Emer ncy Management Agency
~~ vFROM John V
Assis In 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 TrackPerformance 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 Basedon information you provided in the response to the draft report we consider therecommendations resolved with a target completion date of March 31 2015 Once youroffice has fully implemented the recommendations please submit a formal close-outletter to us within 30 days so that we may close the recommendations The requestshould 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 ofEmergency Management Oversight at OIGEMOFoliowupoi~dhsgov
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 postthe report on our website for public dissemination
Major contributors to this report are Kaye McTighe Director Headquarters OfficeNigel Gardner Audit Manager Christine Alvarez Auditor-in-Charge andKimberly Letnaunchyn Program Analyst
wwwoigdhsgov QIG-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
wwwoigdhsgov 2 OIG-15-06-D
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Background
WhenthePresidentdeclaresaFederaldisastertheFederalEmergencyManagement Agency(FEMA)RegionalOfficethatservicestheaffectedStateisresponsiblefor responseandrecoveryeffortsTheRegionalOfficeopensaJointFieldOfficeto coordinateeffortswithitsdisasterpartnersWhenaJointFieldOfficeclosesthe disasterprogramsusuallytransferbacktotheRegionalOfficeIncaseswhereStateand localcommunityofficialsbusinessesandcitizensneedadditionalrecoveryassistance FEMAmayopenaLongTermRecoveryOfficeTheseofficesopenbecausethesize severityorthenumberofdisastersoverwhelmstheRegionalOfficeFigure1showsthe progressionofthedisasterresponseandrecoveryresponsibilitythroughFEMA
Figure1DisasterFlowchart
Disaster Declaration
RegionBegins Response
JointField OfficeOpens
JointField OfficeCloses
Region Continues Response
CanRegion Resume
Responsibilityof Disaster
LongTerm Recovery
OfficeOpens
LongTerm Recovery
OfficeCloses
Yes
No
No
Yes
Region Resumes
Responsibility forDisaster
Source DHS OIG
ThestructureofLongTermRecoveryOfficesinpartmirrorsdivisionswithinthe RegionalandJointFieldOfficestoensureasmoothtransitionbackintoregional operationsForexampleeachofficehasLogisticsFinanceandOperationsDivisions ResultsofAudit Weestimatethatbetween1994and2013FEMAobligatedandspentmorethan $4billioninadministrativecostsandmorethan$1billioninsalariesforthesevenLong TermRecoveryOfficesTheseofficeswereresponsiblefor26majordisaster declarationstotaling$66billioninobligatedfundsHoweverFEMAdoesnottrackcosts
wwwoigdhsgov 3 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
orperformancedatafortheseofficesAsaresultFEMAcannotdeterminethecost effectivenessofLongTermRecoveryOfficeoperationsInadditionFEMAhasnot createdstandardizedpoliciesproceduresandperformancemeasuresforLongTerm RecoveryOfficeoperationsWithoutthemFEMAcannotensureconsistencyin establishingandmanagingtheseoffices InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyFederal spendingforHurricaneSandywilllikelysurpassallbutonepreviousdisaster(Hurricane Katrina)ThereforeitisimperativethatFEMAshould(1)identifytrackandreport performancedatathatshowscosteffectivenessforLongTermRecoveryOfficesand (2)implementstandardizedpoliciesproceduresandperformancemeasuresto establishoperateandcloseLongTermRecoveryOffices FEMADoesNotTrackLongTermRecoveryOfficeCostsorPerformanceData FEMAdoesnottrackcostsordataassociatedwithperformancemeasuresforLongTerm RecoveryOfficesWithouttrackingcostsordataFEMAcannotdeterminewhetherLong TermRecoveryOfficesarecosteffective Costs FEMAcouldnotverifythecostsofeachLongTermRecoveryOfficeTheFederal ManagersFinancialIntegrityActof1982(Act)inpartrequiresthatFederalagencies properlyrecordandaccountforrevenuesandexpendituresapplicabletoagency operationstomaintainaccountabilityfortheirassetsFEMAassertsthatitisnotin violationofthisActbecauseFEMArsquosfinancialsystemtracksoveralldisastercosts HoweverFEMAcouldnotprovidethecostsbylocationTofullyaccomplishthegoalof theActFEMAshouldbetrackingthecostsforeachLongTermRecoveryOffice FEMAprovidedtheoveralldisastercostsrelatedtosevenLongTermRecoveryOffices WeworkedwithFEMAtoanalyzethesecostsandmutuallyagreedtoestimatethat FEMAobligatedandspentmorethan$4billioninadministrativecostsandmorethan$1 billioninsalariesforthesevenofficesWithouttrackingcostsFEMAisunableto determinewhetherLongTermRecoveryOfficeoperationsarecosteffectiveFurther FEMAneedstotrackimportantdatasuchasofficespendingdisasterprogram workloadandnumberofLongTermRecoverypersonneltodetermineeconomiesof scale
wwwoigdhsgov 4 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
DataAssociatedwithPerformanceMeasures InadditionFEMAisnottrackingdataassociatedwithperformancemeasures Performancemeasurementistheongoingmonitoringandreportingofprogram accomplishmentsparticularlyprogresstowardpreͲestablishedgoalsPerformance measuresmayaddress(1)thetypeorlevelofprogramactivitiesconducted(process) (2)thedirectproductsandservicesaprogramdelivers(outputs)or(3)theresultsof thoseproductsandservices(outcomes)WithouttrackingsuchdataFEMAcannot determinewhethertheeconomiesofscalearecosteffective ForexampleFEMAmirrorsitsLongTermRecoveryOfficesinpartaftertheoperations intheRegionalandJointFieldOfficesAllthreeofficetypeshaveLogisticsFinancialand OperationsDivisionsTheseparalleldivisionsexisttoallowforasmoothtransitionof disasteroperationsbacktotheRegionalOfficewhenRegionalofficialsdecidetheyno longerneedaLongTermRecoveryOffice FEMANeedsStandardizedPoliciesProceduresandPerformanceMeasuresforLong TermRecoveryOffices FEMAestablishesoperatesandclosesLongTermRecoveryOfficeswithout standardizedpoliciesproceduresandperformancemeasuresTwoFederalstatutes theRobertTStaffordDisasterReliefandEmergencyAssistanceActandPostͲKatrina EmergencyManagementReformActof2006authorizeFEMAtoestablishfieldoffices includingLongTermRecoveryOfficesHoweverthesestatutesdonotprovide proceduralguidanceorperformancemeasuresfortheseoffices TheGovernmentPerformanceandResultsActof1993institutedagovernmentͲwide requirementthatagenciessetgoalsandreportannuallyonperformanceAccordingto theGovernmentAccountabilityOffice(GAO)mostFederalagenciesnowuse performancemeasurestotrackprogresstowardsgoals1 WithoutstandardizedpoliciesproceduresandperformancemeasuresFEMAofficials attheirdiscretiondeterminetheoveralloperationofLongTermRecoveryOffices FEMAregionalofficialssaidthatthefactorstheyconsiderindecidingtoopenorclosea LongTermRecoveryOfficeincludethevolumeofIndividualAssistanceapplications openedPublicAssistanceprojectapplicationsPublicAssistanceprojectrevisionsand HazardMitigationprojectssubmittedandtheamountofinsuranceclaimsanddollars paidWeaskedFEMAtoprovideuswithcopiesofthereportsitusedtodecidewhether
1PerformanceMeasurementandEvaluationDefinitionsandRelationshipsGAOͲ11Ͳ 646SPMay22011
wwwoigdhsgov 5 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
toopenorcloseaLongTermRecoveryOfficeTheywereabletoprovideuswithreports showingdataFEMAassessedfortheclosurebutnottheestablishmentofLongTerm RecoveryOfficesInadditionthesereportswerenotstandardizedandnoteveryregion usedthemFEMAofficialssaidthatthekeydecisionpointforestablishingandclosinga LongTermRecoveryOfficerestsontheregionalofficialsrsquoldquodisasterknowledgerdquofor determiningtheneedoperationandclosureoftheseofficesFEMAalsosaidtheability anddesireoftheaffectedStatetocloseoutdisasterrecoveryworkquicklyaffectsthe operationsandclosureoftheLongTermRecoveryOffices AsaresultofusingthissubjectivedecisionͲmakingprocessandtheaffectedStatesrsquo abilityanddesiretocloseoutthedisasterLongTermRecoveryOfficesremainopenfor inconsistenttimeframesTable1showsthatasofOctober2013FEMAhadopened sevenLongTermRecoveryOfficesandhadclosedfour Table1FEMALongTermRecoveryOffices1994ndash2013
FEMA Region State Opened ClosedStatus
LTRO1 Agein Months
Major Disasters Managed
TotalObligated DisasterFunds
Averageof Staff
RegionIV Mississippi 42006 Open 90 1 10070369164 970 RegionIV Florida 52005 12012 79 7 9252934569 200 RegionIV Alabama 62006 112009 40 1 1027409341 110 RegionVI Texas 42006 22009 33 2 1930083021 122 RegionVI Louisiana 52006 Open 89 4 33458602832 790 RegionVII Iowa 82009 102012 37 1 1909841777 104
RegionIX California 11994 Transitionedto anAreaField OfficeͲ2008
167 10 8095285213 315
TOTALS 26 $65744525917
SourceFEMAHeadquartersandFEMARegionIVVIVIIandIXFEMADisasterFinancialStatusReports fromAugust2013andFEMAFinancialInformationToolReportsfromNovember2013 1LongTermRecoveryOffice TotalObligatedDisasterFundsarecalculatedfromthetimeofthedisasterdeclarationuntildisaster closureorOctober312013whichevercamefirst InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyHurricane SandyislikelytobeoneofthemostcostlydisastersinhistoryAsofJanuary2014 FEMAhadalreadyobligatednearly$7billionindisasterfundsforHurricaneSandyin NewYorkandNewJerseyandemployedover700staffforLongTermRecoveryOffices inthosetwoStates FEMAofficialsrecognizethelackofstandardizedpoliciesproceduresandperformance measuresforLongTermRecoveryOfficesWithoutthesecontrolsinplaceFEMAisat riskformismanagementofFederaldisasterfundsandcannotensureconsistencyin
wwwoigdhsgov 6 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
establishingandmanagingtheseofficesHoweverseveralFEMAregionalofficialssaid theyhavedevelopedindividualpracticesfortheLongTermRecoveryOfficesusingtheir knowledgeofdisasteroperationsandregionalofficecapabilitiesAdditionallysince September2013severalFEMAregionalofficesbegansharingtheirpracticeswithFEMA RegionIIwhichisresponsibleforHurricaneSandyrecoveryinNewJerseyandNew YorkFinallybefore2008FEMAheadquartersdevelopedadraftdirectiveoutlining LongTermRecoveryOfficeoperationsHoweverFEMAheadquartersrsquoleadershiphas notimplementedthatdirective Conclusion FEMArisksmismanagingdisasterrelieffundsbecauseitdoesnottrackcostsor performancedataandhasnotcreatedandimplementedstandardizedpolicies proceduresandperformancemeasuresforLongTermRecoveryOfficesCorrecting thesedeficiencieswillprovideFEMAtheinformationandguidanceitneedsto determinewhetherLongTermRecoveryOfficesarecosteffectiveInadditionFEMA canbetterensureconsistencyinestablishingandmanagingtheseoffices
Recommendations
WerecommendthattheAssociateAdministratorforResponseandRecoveryFederal EmergencyManagementAgency Recommendation1Identifytrackandreportcostsandperformancedatathatshow costeffectivenessforLongTermRecoveryOffices Recommendation2Implementstandardizedpoliciesproceduresandperformance measurestoestablishoperateandcloseLongTermRecoveryOffices
wwwoigdhsgov 7 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ManagementCommentsandOIGAnalysis WereceivedandreviewedwrittencommentsonthedraftreportfromFEMArsquosAssociate AdministratorforPolicyProgramAnalysisandInternationalAffairsFEMAconcurswith ourrecommendations BasedontheinformationFEMAprovidedweconsiderrecommendation1asresolved andopenFEMAiscurrentlydeterminingthecosteffectivenessofvariousmodelsfor postͲdisastercoordinationanddeliveryofassistanceThisinitiativewillestablishcriteria fordeterminingthecosteffectivenessandapplicabilityofonemodelversusanother basedonhistoriccostdataandprojectionsofpotentialcostsavingsFEMAwillthen developdecisionͲmakingguidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessofLongTermRecoveryOfficesversustransitioningsupportto theFEMARegionorotheroptionsFEMArsquosestimatedcompletiondateisMarch31 2015 BasedontheinformationFEMAprovidedwealsoconsiderrecommendation2as resolvedandopenFEMAiscurrentlydocumentingtheprocessprocedures performancemeasureslessonslearnedandbestpracticesusedtoscopeandestablish theSandyRecoveryOfficeTheSandyRecoveryOfficeapproachandOIGfindingswill assisttheFEMAinitiativetoupdateandimplementpreviouslydevelopeddraft guidanceproceduresandperformancemeasurestoestablishoperateandcloseLong TermRecoveryOfficesFEMArsquosestimatedcompletiondateisMarch312015 AppendixBincludesacopyofthemanagementcommentsintheirentirety
wwwoigdhsgov 8 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment TheobjectiveofthisauditwastodeterminewhetherFEMArsquospoliciesproceduresand performancemeasuresforestablishingoperatingandclosingLongTermRecovery OfficesmeetFederalstatutesandareconsistentlyapplied WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA RegionsIVVIVIIandIXreviewedFederalstatutesandregulationsanddraftFEMA policiesandproceduresanalyzeddisastercostdataforthedisastersmanagedbythe sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013 UsingthedisastercostdataweestimatedtheLongTermRecoveryOfficesoperating costsForthisweusedtheoveralldisasteroperationsobligationsandexpendituresand eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery OfficesWethenadjustedthosecostsandobligationstoreflecttheestimatedcost attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober 2013WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery Officesandperformedotherproceduresconsiderednecessarytoaccomplishour objective WedidnotassesstheadequacyoftheagencyrsquosinternalcontrolsapplicabletoLong TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit objectives WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectivesWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectives
wwwoigdhsgov 9 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
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
wwwoigdhsgov 2 OIG-15-06-D
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Background
WhenthePresidentdeclaresaFederaldisastertheFederalEmergencyManagement Agency(FEMA)RegionalOfficethatservicestheaffectedStateisresponsiblefor responseandrecoveryeffortsTheRegionalOfficeopensaJointFieldOfficeto coordinateeffortswithitsdisasterpartnersWhenaJointFieldOfficeclosesthe disasterprogramsusuallytransferbacktotheRegionalOfficeIncaseswhereStateand localcommunityofficialsbusinessesandcitizensneedadditionalrecoveryassistance FEMAmayopenaLongTermRecoveryOfficeTheseofficesopenbecausethesize severityorthenumberofdisastersoverwhelmstheRegionalOfficeFigure1showsthe progressionofthedisasterresponseandrecoveryresponsibilitythroughFEMA
Figure1DisasterFlowchart
Disaster Declaration
RegionBegins Response
JointField OfficeOpens
JointField OfficeCloses
Region Continues Response
CanRegion Resume
Responsibilityof Disaster
LongTerm Recovery
OfficeOpens
LongTerm Recovery
OfficeCloses
Yes
No
No
Yes
Region Resumes
Responsibility forDisaster
Source DHS OIG
ThestructureofLongTermRecoveryOfficesinpartmirrorsdivisionswithinthe RegionalandJointFieldOfficestoensureasmoothtransitionbackintoregional operationsForexampleeachofficehasLogisticsFinanceandOperationsDivisions ResultsofAudit Weestimatethatbetween1994and2013FEMAobligatedandspentmorethan $4billioninadministrativecostsandmorethan$1billioninsalariesforthesevenLong TermRecoveryOfficesTheseofficeswereresponsiblefor26majordisaster declarationstotaling$66billioninobligatedfundsHoweverFEMAdoesnottrackcosts
wwwoigdhsgov 3 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
orperformancedatafortheseofficesAsaresultFEMAcannotdeterminethecost effectivenessofLongTermRecoveryOfficeoperationsInadditionFEMAhasnot createdstandardizedpoliciesproceduresandperformancemeasuresforLongTerm RecoveryOfficeoperationsWithoutthemFEMAcannotensureconsistencyin establishingandmanagingtheseoffices InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyFederal spendingforHurricaneSandywilllikelysurpassallbutonepreviousdisaster(Hurricane Katrina)ThereforeitisimperativethatFEMAshould(1)identifytrackandreport performancedatathatshowscosteffectivenessforLongTermRecoveryOfficesand (2)implementstandardizedpoliciesproceduresandperformancemeasuresto establishoperateandcloseLongTermRecoveryOffices FEMADoesNotTrackLongTermRecoveryOfficeCostsorPerformanceData FEMAdoesnottrackcostsordataassociatedwithperformancemeasuresforLongTerm RecoveryOfficesWithouttrackingcostsordataFEMAcannotdeterminewhetherLong TermRecoveryOfficesarecosteffective Costs FEMAcouldnotverifythecostsofeachLongTermRecoveryOfficeTheFederal ManagersFinancialIntegrityActof1982(Act)inpartrequiresthatFederalagencies properlyrecordandaccountforrevenuesandexpendituresapplicabletoagency operationstomaintainaccountabilityfortheirassetsFEMAassertsthatitisnotin violationofthisActbecauseFEMArsquosfinancialsystemtracksoveralldisastercosts HoweverFEMAcouldnotprovidethecostsbylocationTofullyaccomplishthegoalof theActFEMAshouldbetrackingthecostsforeachLongTermRecoveryOffice FEMAprovidedtheoveralldisastercostsrelatedtosevenLongTermRecoveryOffices WeworkedwithFEMAtoanalyzethesecostsandmutuallyagreedtoestimatethat FEMAobligatedandspentmorethan$4billioninadministrativecostsandmorethan$1 billioninsalariesforthesevenofficesWithouttrackingcostsFEMAisunableto determinewhetherLongTermRecoveryOfficeoperationsarecosteffectiveFurther FEMAneedstotrackimportantdatasuchasofficespendingdisasterprogram workloadandnumberofLongTermRecoverypersonneltodetermineeconomiesof scale
wwwoigdhsgov 4 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
DataAssociatedwithPerformanceMeasures InadditionFEMAisnottrackingdataassociatedwithperformancemeasures Performancemeasurementistheongoingmonitoringandreportingofprogram accomplishmentsparticularlyprogresstowardpreͲestablishedgoalsPerformance measuresmayaddress(1)thetypeorlevelofprogramactivitiesconducted(process) (2)thedirectproductsandservicesaprogramdelivers(outputs)or(3)theresultsof thoseproductsandservices(outcomes)WithouttrackingsuchdataFEMAcannot determinewhethertheeconomiesofscalearecosteffective ForexampleFEMAmirrorsitsLongTermRecoveryOfficesinpartaftertheoperations intheRegionalandJointFieldOfficesAllthreeofficetypeshaveLogisticsFinancialand OperationsDivisionsTheseparalleldivisionsexisttoallowforasmoothtransitionof disasteroperationsbacktotheRegionalOfficewhenRegionalofficialsdecidetheyno longerneedaLongTermRecoveryOffice FEMANeedsStandardizedPoliciesProceduresandPerformanceMeasuresforLong TermRecoveryOffices FEMAestablishesoperatesandclosesLongTermRecoveryOfficeswithout standardizedpoliciesproceduresandperformancemeasuresTwoFederalstatutes theRobertTStaffordDisasterReliefandEmergencyAssistanceActandPostͲKatrina EmergencyManagementReformActof2006authorizeFEMAtoestablishfieldoffices includingLongTermRecoveryOfficesHoweverthesestatutesdonotprovide proceduralguidanceorperformancemeasuresfortheseoffices TheGovernmentPerformanceandResultsActof1993institutedagovernmentͲwide requirementthatagenciessetgoalsandreportannuallyonperformanceAccordingto theGovernmentAccountabilityOffice(GAO)mostFederalagenciesnowuse performancemeasurestotrackprogresstowardsgoals1 WithoutstandardizedpoliciesproceduresandperformancemeasuresFEMAofficials attheirdiscretiondeterminetheoveralloperationofLongTermRecoveryOffices FEMAregionalofficialssaidthatthefactorstheyconsiderindecidingtoopenorclosea LongTermRecoveryOfficeincludethevolumeofIndividualAssistanceapplications openedPublicAssistanceprojectapplicationsPublicAssistanceprojectrevisionsand HazardMitigationprojectssubmittedandtheamountofinsuranceclaimsanddollars paidWeaskedFEMAtoprovideuswithcopiesofthereportsitusedtodecidewhether
1PerformanceMeasurementandEvaluationDefinitionsandRelationshipsGAOͲ11Ͳ 646SPMay22011
wwwoigdhsgov 5 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
toopenorcloseaLongTermRecoveryOfficeTheywereabletoprovideuswithreports showingdataFEMAassessedfortheclosurebutnottheestablishmentofLongTerm RecoveryOfficesInadditionthesereportswerenotstandardizedandnoteveryregion usedthemFEMAofficialssaidthatthekeydecisionpointforestablishingandclosinga LongTermRecoveryOfficerestsontheregionalofficialsrsquoldquodisasterknowledgerdquofor determiningtheneedoperationandclosureoftheseofficesFEMAalsosaidtheability anddesireoftheaffectedStatetocloseoutdisasterrecoveryworkquicklyaffectsthe operationsandclosureoftheLongTermRecoveryOffices AsaresultofusingthissubjectivedecisionͲmakingprocessandtheaffectedStatesrsquo abilityanddesiretocloseoutthedisasterLongTermRecoveryOfficesremainopenfor inconsistenttimeframesTable1showsthatasofOctober2013FEMAhadopened sevenLongTermRecoveryOfficesandhadclosedfour Table1FEMALongTermRecoveryOffices1994ndash2013
FEMA Region State Opened ClosedStatus
LTRO1 Agein Months
Major Disasters Managed
TotalObligated DisasterFunds
Averageof Staff
RegionIV Mississippi 42006 Open 90 1 10070369164 970 RegionIV Florida 52005 12012 79 7 9252934569 200 RegionIV Alabama 62006 112009 40 1 1027409341 110 RegionVI Texas 42006 22009 33 2 1930083021 122 RegionVI Louisiana 52006 Open 89 4 33458602832 790 RegionVII Iowa 82009 102012 37 1 1909841777 104
RegionIX California 11994 Transitionedto anAreaField OfficeͲ2008
167 10 8095285213 315
TOTALS 26 $65744525917
SourceFEMAHeadquartersandFEMARegionIVVIVIIandIXFEMADisasterFinancialStatusReports fromAugust2013andFEMAFinancialInformationToolReportsfromNovember2013 1LongTermRecoveryOffice TotalObligatedDisasterFundsarecalculatedfromthetimeofthedisasterdeclarationuntildisaster closureorOctober312013whichevercamefirst InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyHurricane SandyislikelytobeoneofthemostcostlydisastersinhistoryAsofJanuary2014 FEMAhadalreadyobligatednearly$7billionindisasterfundsforHurricaneSandyin NewYorkandNewJerseyandemployedover700staffforLongTermRecoveryOffices inthosetwoStates FEMAofficialsrecognizethelackofstandardizedpoliciesproceduresandperformance measuresforLongTermRecoveryOfficesWithoutthesecontrolsinplaceFEMAisat riskformismanagementofFederaldisasterfundsandcannotensureconsistencyin
wwwoigdhsgov 6 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
establishingandmanagingtheseofficesHoweverseveralFEMAregionalofficialssaid theyhavedevelopedindividualpracticesfortheLongTermRecoveryOfficesusingtheir knowledgeofdisasteroperationsandregionalofficecapabilitiesAdditionallysince September2013severalFEMAregionalofficesbegansharingtheirpracticeswithFEMA RegionIIwhichisresponsibleforHurricaneSandyrecoveryinNewJerseyandNew YorkFinallybefore2008FEMAheadquartersdevelopedadraftdirectiveoutlining LongTermRecoveryOfficeoperationsHoweverFEMAheadquartersrsquoleadershiphas notimplementedthatdirective Conclusion FEMArisksmismanagingdisasterrelieffundsbecauseitdoesnottrackcostsor performancedataandhasnotcreatedandimplementedstandardizedpolicies proceduresandperformancemeasuresforLongTermRecoveryOfficesCorrecting thesedeficiencieswillprovideFEMAtheinformationandguidanceitneedsto determinewhetherLongTermRecoveryOfficesarecosteffectiveInadditionFEMA canbetterensureconsistencyinestablishingandmanagingtheseoffices
Recommendations
WerecommendthattheAssociateAdministratorforResponseandRecoveryFederal EmergencyManagementAgency Recommendation1Identifytrackandreportcostsandperformancedatathatshow costeffectivenessforLongTermRecoveryOffices Recommendation2Implementstandardizedpoliciesproceduresandperformance measurestoestablishoperateandcloseLongTermRecoveryOffices
wwwoigdhsgov 7 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ManagementCommentsandOIGAnalysis WereceivedandreviewedwrittencommentsonthedraftreportfromFEMArsquosAssociate AdministratorforPolicyProgramAnalysisandInternationalAffairsFEMAconcurswith ourrecommendations BasedontheinformationFEMAprovidedweconsiderrecommendation1asresolved andopenFEMAiscurrentlydeterminingthecosteffectivenessofvariousmodelsfor postͲdisastercoordinationanddeliveryofassistanceThisinitiativewillestablishcriteria fordeterminingthecosteffectivenessandapplicabilityofonemodelversusanother basedonhistoriccostdataandprojectionsofpotentialcostsavingsFEMAwillthen developdecisionͲmakingguidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessofLongTermRecoveryOfficesversustransitioningsupportto theFEMARegionorotheroptionsFEMArsquosestimatedcompletiondateisMarch31 2015 BasedontheinformationFEMAprovidedwealsoconsiderrecommendation2as resolvedandopenFEMAiscurrentlydocumentingtheprocessprocedures performancemeasureslessonslearnedandbestpracticesusedtoscopeandestablish theSandyRecoveryOfficeTheSandyRecoveryOfficeapproachandOIGfindingswill assisttheFEMAinitiativetoupdateandimplementpreviouslydevelopeddraft guidanceproceduresandperformancemeasurestoestablishoperateandcloseLong TermRecoveryOfficesFEMArsquosestimatedcompletiondateisMarch312015 AppendixBincludesacopyofthemanagementcommentsintheirentirety
wwwoigdhsgov 8 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment TheobjectiveofthisauditwastodeterminewhetherFEMArsquospoliciesproceduresand performancemeasuresforestablishingoperatingandclosingLongTermRecovery OfficesmeetFederalstatutesandareconsistentlyapplied WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA RegionsIVVIVIIandIXreviewedFederalstatutesandregulationsanddraftFEMA policiesandproceduresanalyzeddisastercostdataforthedisastersmanagedbythe sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013 UsingthedisastercostdataweestimatedtheLongTermRecoveryOfficesoperating costsForthisweusedtheoveralldisasteroperationsobligationsandexpendituresand eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery OfficesWethenadjustedthosecostsandobligationstoreflecttheestimatedcost attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober 2013WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery Officesandperformedotherproceduresconsiderednecessarytoaccomplishour objective WedidnotassesstheadequacyoftheagencyrsquosinternalcontrolsapplicabletoLong TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit objectives WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectivesWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectives
wwwoigdhsgov 9 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Background
WhenthePresidentdeclaresaFederaldisastertheFederalEmergencyManagement Agency(FEMA)RegionalOfficethatservicestheaffectedStateisresponsiblefor responseandrecoveryeffortsTheRegionalOfficeopensaJointFieldOfficeto coordinateeffortswithitsdisasterpartnersWhenaJointFieldOfficeclosesthe disasterprogramsusuallytransferbacktotheRegionalOfficeIncaseswhereStateand localcommunityofficialsbusinessesandcitizensneedadditionalrecoveryassistance FEMAmayopenaLongTermRecoveryOfficeTheseofficesopenbecausethesize severityorthenumberofdisastersoverwhelmstheRegionalOfficeFigure1showsthe progressionofthedisasterresponseandrecoveryresponsibilitythroughFEMA
Figure1DisasterFlowchart
Disaster Declaration
RegionBegins Response
JointField OfficeOpens
JointField OfficeCloses
Region Continues Response
CanRegion Resume
Responsibilityof Disaster
LongTerm Recovery
OfficeOpens
LongTerm Recovery
OfficeCloses
Yes
No
No
Yes
Region Resumes
Responsibility forDisaster
Source DHS OIG
ThestructureofLongTermRecoveryOfficesinpartmirrorsdivisionswithinthe RegionalandJointFieldOfficestoensureasmoothtransitionbackintoregional operationsForexampleeachofficehasLogisticsFinanceandOperationsDivisions ResultsofAudit Weestimatethatbetween1994and2013FEMAobligatedandspentmorethan $4billioninadministrativecostsandmorethan$1billioninsalariesforthesevenLong TermRecoveryOfficesTheseofficeswereresponsiblefor26majordisaster declarationstotaling$66billioninobligatedfundsHoweverFEMAdoesnottrackcosts
wwwoigdhsgov 3 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
orperformancedatafortheseofficesAsaresultFEMAcannotdeterminethecost effectivenessofLongTermRecoveryOfficeoperationsInadditionFEMAhasnot createdstandardizedpoliciesproceduresandperformancemeasuresforLongTerm RecoveryOfficeoperationsWithoutthemFEMAcannotensureconsistencyin establishingandmanagingtheseoffices InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyFederal spendingforHurricaneSandywilllikelysurpassallbutonepreviousdisaster(Hurricane Katrina)ThereforeitisimperativethatFEMAshould(1)identifytrackandreport performancedatathatshowscosteffectivenessforLongTermRecoveryOfficesand (2)implementstandardizedpoliciesproceduresandperformancemeasuresto establishoperateandcloseLongTermRecoveryOffices FEMADoesNotTrackLongTermRecoveryOfficeCostsorPerformanceData FEMAdoesnottrackcostsordataassociatedwithperformancemeasuresforLongTerm RecoveryOfficesWithouttrackingcostsordataFEMAcannotdeterminewhetherLong TermRecoveryOfficesarecosteffective Costs FEMAcouldnotverifythecostsofeachLongTermRecoveryOfficeTheFederal ManagersFinancialIntegrityActof1982(Act)inpartrequiresthatFederalagencies properlyrecordandaccountforrevenuesandexpendituresapplicabletoagency operationstomaintainaccountabilityfortheirassetsFEMAassertsthatitisnotin violationofthisActbecauseFEMArsquosfinancialsystemtracksoveralldisastercosts HoweverFEMAcouldnotprovidethecostsbylocationTofullyaccomplishthegoalof theActFEMAshouldbetrackingthecostsforeachLongTermRecoveryOffice FEMAprovidedtheoveralldisastercostsrelatedtosevenLongTermRecoveryOffices WeworkedwithFEMAtoanalyzethesecostsandmutuallyagreedtoestimatethat FEMAobligatedandspentmorethan$4billioninadministrativecostsandmorethan$1 billioninsalariesforthesevenofficesWithouttrackingcostsFEMAisunableto determinewhetherLongTermRecoveryOfficeoperationsarecosteffectiveFurther FEMAneedstotrackimportantdatasuchasofficespendingdisasterprogram workloadandnumberofLongTermRecoverypersonneltodetermineeconomiesof scale
wwwoigdhsgov 4 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
DataAssociatedwithPerformanceMeasures InadditionFEMAisnottrackingdataassociatedwithperformancemeasures Performancemeasurementistheongoingmonitoringandreportingofprogram accomplishmentsparticularlyprogresstowardpreͲestablishedgoalsPerformance measuresmayaddress(1)thetypeorlevelofprogramactivitiesconducted(process) (2)thedirectproductsandservicesaprogramdelivers(outputs)or(3)theresultsof thoseproductsandservices(outcomes)WithouttrackingsuchdataFEMAcannot determinewhethertheeconomiesofscalearecosteffective ForexampleFEMAmirrorsitsLongTermRecoveryOfficesinpartaftertheoperations intheRegionalandJointFieldOfficesAllthreeofficetypeshaveLogisticsFinancialand OperationsDivisionsTheseparalleldivisionsexisttoallowforasmoothtransitionof disasteroperationsbacktotheRegionalOfficewhenRegionalofficialsdecidetheyno longerneedaLongTermRecoveryOffice FEMANeedsStandardizedPoliciesProceduresandPerformanceMeasuresforLong TermRecoveryOffices FEMAestablishesoperatesandclosesLongTermRecoveryOfficeswithout standardizedpoliciesproceduresandperformancemeasuresTwoFederalstatutes theRobertTStaffordDisasterReliefandEmergencyAssistanceActandPostͲKatrina EmergencyManagementReformActof2006authorizeFEMAtoestablishfieldoffices includingLongTermRecoveryOfficesHoweverthesestatutesdonotprovide proceduralguidanceorperformancemeasuresfortheseoffices TheGovernmentPerformanceandResultsActof1993institutedagovernmentͲwide requirementthatagenciessetgoalsandreportannuallyonperformanceAccordingto theGovernmentAccountabilityOffice(GAO)mostFederalagenciesnowuse performancemeasurestotrackprogresstowardsgoals1 WithoutstandardizedpoliciesproceduresandperformancemeasuresFEMAofficials attheirdiscretiondeterminetheoveralloperationofLongTermRecoveryOffices FEMAregionalofficialssaidthatthefactorstheyconsiderindecidingtoopenorclosea LongTermRecoveryOfficeincludethevolumeofIndividualAssistanceapplications openedPublicAssistanceprojectapplicationsPublicAssistanceprojectrevisionsand HazardMitigationprojectssubmittedandtheamountofinsuranceclaimsanddollars paidWeaskedFEMAtoprovideuswithcopiesofthereportsitusedtodecidewhether
1PerformanceMeasurementandEvaluationDefinitionsandRelationshipsGAOͲ11Ͳ 646SPMay22011
wwwoigdhsgov 5 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
toopenorcloseaLongTermRecoveryOfficeTheywereabletoprovideuswithreports showingdataFEMAassessedfortheclosurebutnottheestablishmentofLongTerm RecoveryOfficesInadditionthesereportswerenotstandardizedandnoteveryregion usedthemFEMAofficialssaidthatthekeydecisionpointforestablishingandclosinga LongTermRecoveryOfficerestsontheregionalofficialsrsquoldquodisasterknowledgerdquofor determiningtheneedoperationandclosureoftheseofficesFEMAalsosaidtheability anddesireoftheaffectedStatetocloseoutdisasterrecoveryworkquicklyaffectsthe operationsandclosureoftheLongTermRecoveryOffices AsaresultofusingthissubjectivedecisionͲmakingprocessandtheaffectedStatesrsquo abilityanddesiretocloseoutthedisasterLongTermRecoveryOfficesremainopenfor inconsistenttimeframesTable1showsthatasofOctober2013FEMAhadopened sevenLongTermRecoveryOfficesandhadclosedfour Table1FEMALongTermRecoveryOffices1994ndash2013
FEMA Region State Opened ClosedStatus
LTRO1 Agein Months
Major Disasters Managed
TotalObligated DisasterFunds
Averageof Staff
RegionIV Mississippi 42006 Open 90 1 10070369164 970 RegionIV Florida 52005 12012 79 7 9252934569 200 RegionIV Alabama 62006 112009 40 1 1027409341 110 RegionVI Texas 42006 22009 33 2 1930083021 122 RegionVI Louisiana 52006 Open 89 4 33458602832 790 RegionVII Iowa 82009 102012 37 1 1909841777 104
RegionIX California 11994 Transitionedto anAreaField OfficeͲ2008
167 10 8095285213 315
TOTALS 26 $65744525917
SourceFEMAHeadquartersandFEMARegionIVVIVIIandIXFEMADisasterFinancialStatusReports fromAugust2013andFEMAFinancialInformationToolReportsfromNovember2013 1LongTermRecoveryOffice TotalObligatedDisasterFundsarecalculatedfromthetimeofthedisasterdeclarationuntildisaster closureorOctober312013whichevercamefirst InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyHurricane SandyislikelytobeoneofthemostcostlydisastersinhistoryAsofJanuary2014 FEMAhadalreadyobligatednearly$7billionindisasterfundsforHurricaneSandyin NewYorkandNewJerseyandemployedover700staffforLongTermRecoveryOffices inthosetwoStates FEMAofficialsrecognizethelackofstandardizedpoliciesproceduresandperformance measuresforLongTermRecoveryOfficesWithoutthesecontrolsinplaceFEMAisat riskformismanagementofFederaldisasterfundsandcannotensureconsistencyin
wwwoigdhsgov 6 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
establishingandmanagingtheseofficesHoweverseveralFEMAregionalofficialssaid theyhavedevelopedindividualpracticesfortheLongTermRecoveryOfficesusingtheir knowledgeofdisasteroperationsandregionalofficecapabilitiesAdditionallysince September2013severalFEMAregionalofficesbegansharingtheirpracticeswithFEMA RegionIIwhichisresponsibleforHurricaneSandyrecoveryinNewJerseyandNew YorkFinallybefore2008FEMAheadquartersdevelopedadraftdirectiveoutlining LongTermRecoveryOfficeoperationsHoweverFEMAheadquartersrsquoleadershiphas notimplementedthatdirective Conclusion FEMArisksmismanagingdisasterrelieffundsbecauseitdoesnottrackcostsor performancedataandhasnotcreatedandimplementedstandardizedpolicies proceduresandperformancemeasuresforLongTermRecoveryOfficesCorrecting thesedeficiencieswillprovideFEMAtheinformationandguidanceitneedsto determinewhetherLongTermRecoveryOfficesarecosteffectiveInadditionFEMA canbetterensureconsistencyinestablishingandmanagingtheseoffices
Recommendations
WerecommendthattheAssociateAdministratorforResponseandRecoveryFederal EmergencyManagementAgency Recommendation1Identifytrackandreportcostsandperformancedatathatshow costeffectivenessforLongTermRecoveryOffices Recommendation2Implementstandardizedpoliciesproceduresandperformance measurestoestablishoperateandcloseLongTermRecoveryOffices
wwwoigdhsgov 7 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ManagementCommentsandOIGAnalysis WereceivedandreviewedwrittencommentsonthedraftreportfromFEMArsquosAssociate AdministratorforPolicyProgramAnalysisandInternationalAffairsFEMAconcurswith ourrecommendations BasedontheinformationFEMAprovidedweconsiderrecommendation1asresolved andopenFEMAiscurrentlydeterminingthecosteffectivenessofvariousmodelsfor postͲdisastercoordinationanddeliveryofassistanceThisinitiativewillestablishcriteria fordeterminingthecosteffectivenessandapplicabilityofonemodelversusanother basedonhistoriccostdataandprojectionsofpotentialcostsavingsFEMAwillthen developdecisionͲmakingguidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessofLongTermRecoveryOfficesversustransitioningsupportto theFEMARegionorotheroptionsFEMArsquosestimatedcompletiondateisMarch31 2015 BasedontheinformationFEMAprovidedwealsoconsiderrecommendation2as resolvedandopenFEMAiscurrentlydocumentingtheprocessprocedures performancemeasureslessonslearnedandbestpracticesusedtoscopeandestablish theSandyRecoveryOfficeTheSandyRecoveryOfficeapproachandOIGfindingswill assisttheFEMAinitiativetoupdateandimplementpreviouslydevelopeddraft guidanceproceduresandperformancemeasurestoestablishoperateandcloseLong TermRecoveryOfficesFEMArsquosestimatedcompletiondateisMarch312015 AppendixBincludesacopyofthemanagementcommentsintheirentirety
wwwoigdhsgov 8 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment TheobjectiveofthisauditwastodeterminewhetherFEMArsquospoliciesproceduresand performancemeasuresforestablishingoperatingandclosingLongTermRecovery OfficesmeetFederalstatutesandareconsistentlyapplied WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA RegionsIVVIVIIandIXreviewedFederalstatutesandregulationsanddraftFEMA policiesandproceduresanalyzeddisastercostdataforthedisastersmanagedbythe sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013 UsingthedisastercostdataweestimatedtheLongTermRecoveryOfficesoperating costsForthisweusedtheoveralldisasteroperationsobligationsandexpendituresand eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery OfficesWethenadjustedthosecostsandobligationstoreflecttheestimatedcost attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober 2013WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery Officesandperformedotherproceduresconsiderednecessarytoaccomplishour objective WedidnotassesstheadequacyoftheagencyrsquosinternalcontrolsapplicabletoLong TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit objectives WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectivesWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectives
wwwoigdhsgov 9 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
orperformancedatafortheseofficesAsaresultFEMAcannotdeterminethecost effectivenessofLongTermRecoveryOfficeoperationsInadditionFEMAhasnot createdstandardizedpoliciesproceduresandperformancemeasuresforLongTerm RecoveryOfficeoperationsWithoutthemFEMAcannotensureconsistencyin establishingandmanagingtheseoffices InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyFederal spendingforHurricaneSandywilllikelysurpassallbutonepreviousdisaster(Hurricane Katrina)ThereforeitisimperativethatFEMAshould(1)identifytrackandreport performancedatathatshowscosteffectivenessforLongTermRecoveryOfficesand (2)implementstandardizedpoliciesproceduresandperformancemeasuresto establishoperateandcloseLongTermRecoveryOffices FEMADoesNotTrackLongTermRecoveryOfficeCostsorPerformanceData FEMAdoesnottrackcostsordataassociatedwithperformancemeasuresforLongTerm RecoveryOfficesWithouttrackingcostsordataFEMAcannotdeterminewhetherLong TermRecoveryOfficesarecosteffective Costs FEMAcouldnotverifythecostsofeachLongTermRecoveryOfficeTheFederal ManagersFinancialIntegrityActof1982(Act)inpartrequiresthatFederalagencies properlyrecordandaccountforrevenuesandexpendituresapplicabletoagency operationstomaintainaccountabilityfortheirassetsFEMAassertsthatitisnotin violationofthisActbecauseFEMArsquosfinancialsystemtracksoveralldisastercosts HoweverFEMAcouldnotprovidethecostsbylocationTofullyaccomplishthegoalof theActFEMAshouldbetrackingthecostsforeachLongTermRecoveryOffice FEMAprovidedtheoveralldisastercostsrelatedtosevenLongTermRecoveryOffices WeworkedwithFEMAtoanalyzethesecostsandmutuallyagreedtoestimatethat FEMAobligatedandspentmorethan$4billioninadministrativecostsandmorethan$1 billioninsalariesforthesevenofficesWithouttrackingcostsFEMAisunableto determinewhetherLongTermRecoveryOfficeoperationsarecosteffectiveFurther FEMAneedstotrackimportantdatasuchasofficespendingdisasterprogram workloadandnumberofLongTermRecoverypersonneltodetermineeconomiesof scale
wwwoigdhsgov 4 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
DataAssociatedwithPerformanceMeasures InadditionFEMAisnottrackingdataassociatedwithperformancemeasures Performancemeasurementistheongoingmonitoringandreportingofprogram accomplishmentsparticularlyprogresstowardpreͲestablishedgoalsPerformance measuresmayaddress(1)thetypeorlevelofprogramactivitiesconducted(process) (2)thedirectproductsandservicesaprogramdelivers(outputs)or(3)theresultsof thoseproductsandservices(outcomes)WithouttrackingsuchdataFEMAcannot determinewhethertheeconomiesofscalearecosteffective ForexampleFEMAmirrorsitsLongTermRecoveryOfficesinpartaftertheoperations intheRegionalandJointFieldOfficesAllthreeofficetypeshaveLogisticsFinancialand OperationsDivisionsTheseparalleldivisionsexisttoallowforasmoothtransitionof disasteroperationsbacktotheRegionalOfficewhenRegionalofficialsdecidetheyno longerneedaLongTermRecoveryOffice FEMANeedsStandardizedPoliciesProceduresandPerformanceMeasuresforLong TermRecoveryOffices FEMAestablishesoperatesandclosesLongTermRecoveryOfficeswithout standardizedpoliciesproceduresandperformancemeasuresTwoFederalstatutes theRobertTStaffordDisasterReliefandEmergencyAssistanceActandPostͲKatrina EmergencyManagementReformActof2006authorizeFEMAtoestablishfieldoffices includingLongTermRecoveryOfficesHoweverthesestatutesdonotprovide proceduralguidanceorperformancemeasuresfortheseoffices TheGovernmentPerformanceandResultsActof1993institutedagovernmentͲwide requirementthatagenciessetgoalsandreportannuallyonperformanceAccordingto theGovernmentAccountabilityOffice(GAO)mostFederalagenciesnowuse performancemeasurestotrackprogresstowardsgoals1 WithoutstandardizedpoliciesproceduresandperformancemeasuresFEMAofficials attheirdiscretiondeterminetheoveralloperationofLongTermRecoveryOffices FEMAregionalofficialssaidthatthefactorstheyconsiderindecidingtoopenorclosea LongTermRecoveryOfficeincludethevolumeofIndividualAssistanceapplications openedPublicAssistanceprojectapplicationsPublicAssistanceprojectrevisionsand HazardMitigationprojectssubmittedandtheamountofinsuranceclaimsanddollars paidWeaskedFEMAtoprovideuswithcopiesofthereportsitusedtodecidewhether
1PerformanceMeasurementandEvaluationDefinitionsandRelationshipsGAOͲ11Ͳ 646SPMay22011
wwwoigdhsgov 5 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
toopenorcloseaLongTermRecoveryOfficeTheywereabletoprovideuswithreports showingdataFEMAassessedfortheclosurebutnottheestablishmentofLongTerm RecoveryOfficesInadditionthesereportswerenotstandardizedandnoteveryregion usedthemFEMAofficialssaidthatthekeydecisionpointforestablishingandclosinga LongTermRecoveryOfficerestsontheregionalofficialsrsquoldquodisasterknowledgerdquofor determiningtheneedoperationandclosureoftheseofficesFEMAalsosaidtheability anddesireoftheaffectedStatetocloseoutdisasterrecoveryworkquicklyaffectsthe operationsandclosureoftheLongTermRecoveryOffices AsaresultofusingthissubjectivedecisionͲmakingprocessandtheaffectedStatesrsquo abilityanddesiretocloseoutthedisasterLongTermRecoveryOfficesremainopenfor inconsistenttimeframesTable1showsthatasofOctober2013FEMAhadopened sevenLongTermRecoveryOfficesandhadclosedfour Table1FEMALongTermRecoveryOffices1994ndash2013
FEMA Region State Opened ClosedStatus
LTRO1 Agein Months
Major Disasters Managed
TotalObligated DisasterFunds
Averageof Staff
RegionIV Mississippi 42006 Open 90 1 10070369164 970 RegionIV Florida 52005 12012 79 7 9252934569 200 RegionIV Alabama 62006 112009 40 1 1027409341 110 RegionVI Texas 42006 22009 33 2 1930083021 122 RegionVI Louisiana 52006 Open 89 4 33458602832 790 RegionVII Iowa 82009 102012 37 1 1909841777 104
RegionIX California 11994 Transitionedto anAreaField OfficeͲ2008
167 10 8095285213 315
TOTALS 26 $65744525917
SourceFEMAHeadquartersandFEMARegionIVVIVIIandIXFEMADisasterFinancialStatusReports fromAugust2013andFEMAFinancialInformationToolReportsfromNovember2013 1LongTermRecoveryOffice TotalObligatedDisasterFundsarecalculatedfromthetimeofthedisasterdeclarationuntildisaster closureorOctober312013whichevercamefirst InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyHurricane SandyislikelytobeoneofthemostcostlydisastersinhistoryAsofJanuary2014 FEMAhadalreadyobligatednearly$7billionindisasterfundsforHurricaneSandyin NewYorkandNewJerseyandemployedover700staffforLongTermRecoveryOffices inthosetwoStates FEMAofficialsrecognizethelackofstandardizedpoliciesproceduresandperformance measuresforLongTermRecoveryOfficesWithoutthesecontrolsinplaceFEMAisat riskformismanagementofFederaldisasterfundsandcannotensureconsistencyin
wwwoigdhsgov 6 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
establishingandmanagingtheseofficesHoweverseveralFEMAregionalofficialssaid theyhavedevelopedindividualpracticesfortheLongTermRecoveryOfficesusingtheir knowledgeofdisasteroperationsandregionalofficecapabilitiesAdditionallysince September2013severalFEMAregionalofficesbegansharingtheirpracticeswithFEMA RegionIIwhichisresponsibleforHurricaneSandyrecoveryinNewJerseyandNew YorkFinallybefore2008FEMAheadquartersdevelopedadraftdirectiveoutlining LongTermRecoveryOfficeoperationsHoweverFEMAheadquartersrsquoleadershiphas notimplementedthatdirective Conclusion FEMArisksmismanagingdisasterrelieffundsbecauseitdoesnottrackcostsor performancedataandhasnotcreatedandimplementedstandardizedpolicies proceduresandperformancemeasuresforLongTermRecoveryOfficesCorrecting thesedeficiencieswillprovideFEMAtheinformationandguidanceitneedsto determinewhetherLongTermRecoveryOfficesarecosteffectiveInadditionFEMA canbetterensureconsistencyinestablishingandmanagingtheseoffices
Recommendations
WerecommendthattheAssociateAdministratorforResponseandRecoveryFederal EmergencyManagementAgency Recommendation1Identifytrackandreportcostsandperformancedatathatshow costeffectivenessforLongTermRecoveryOffices Recommendation2Implementstandardizedpoliciesproceduresandperformance measurestoestablishoperateandcloseLongTermRecoveryOffices
wwwoigdhsgov 7 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ManagementCommentsandOIGAnalysis WereceivedandreviewedwrittencommentsonthedraftreportfromFEMArsquosAssociate AdministratorforPolicyProgramAnalysisandInternationalAffairsFEMAconcurswith ourrecommendations BasedontheinformationFEMAprovidedweconsiderrecommendation1asresolved andopenFEMAiscurrentlydeterminingthecosteffectivenessofvariousmodelsfor postͲdisastercoordinationanddeliveryofassistanceThisinitiativewillestablishcriteria fordeterminingthecosteffectivenessandapplicabilityofonemodelversusanother basedonhistoriccostdataandprojectionsofpotentialcostsavingsFEMAwillthen developdecisionͲmakingguidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessofLongTermRecoveryOfficesversustransitioningsupportto theFEMARegionorotheroptionsFEMArsquosestimatedcompletiondateisMarch31 2015 BasedontheinformationFEMAprovidedwealsoconsiderrecommendation2as resolvedandopenFEMAiscurrentlydocumentingtheprocessprocedures performancemeasureslessonslearnedandbestpracticesusedtoscopeandestablish theSandyRecoveryOfficeTheSandyRecoveryOfficeapproachandOIGfindingswill assisttheFEMAinitiativetoupdateandimplementpreviouslydevelopeddraft guidanceproceduresandperformancemeasurestoestablishoperateandcloseLong TermRecoveryOfficesFEMArsquosestimatedcompletiondateisMarch312015 AppendixBincludesacopyofthemanagementcommentsintheirentirety
wwwoigdhsgov 8 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment TheobjectiveofthisauditwastodeterminewhetherFEMArsquospoliciesproceduresand performancemeasuresforestablishingoperatingandclosingLongTermRecovery OfficesmeetFederalstatutesandareconsistentlyapplied WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA RegionsIVVIVIIandIXreviewedFederalstatutesandregulationsanddraftFEMA policiesandproceduresanalyzeddisastercostdataforthedisastersmanagedbythe sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013 UsingthedisastercostdataweestimatedtheLongTermRecoveryOfficesoperating costsForthisweusedtheoveralldisasteroperationsobligationsandexpendituresand eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery OfficesWethenadjustedthosecostsandobligationstoreflecttheestimatedcost attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober 2013WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery Officesandperformedotherproceduresconsiderednecessarytoaccomplishour objective WedidnotassesstheadequacyoftheagencyrsquosinternalcontrolsapplicabletoLong TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit objectives WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectivesWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectives
wwwoigdhsgov 9 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
DataAssociatedwithPerformanceMeasures InadditionFEMAisnottrackingdataassociatedwithperformancemeasures Performancemeasurementistheongoingmonitoringandreportingofprogram accomplishmentsparticularlyprogresstowardpreͲestablishedgoalsPerformance measuresmayaddress(1)thetypeorlevelofprogramactivitiesconducted(process) (2)thedirectproductsandservicesaprogramdelivers(outputs)or(3)theresultsof thoseproductsandservices(outcomes)WithouttrackingsuchdataFEMAcannot determinewhethertheeconomiesofscalearecosteffective ForexampleFEMAmirrorsitsLongTermRecoveryOfficesinpartaftertheoperations intheRegionalandJointFieldOfficesAllthreeofficetypeshaveLogisticsFinancialand OperationsDivisionsTheseparalleldivisionsexisttoallowforasmoothtransitionof disasteroperationsbacktotheRegionalOfficewhenRegionalofficialsdecidetheyno longerneedaLongTermRecoveryOffice FEMANeedsStandardizedPoliciesProceduresandPerformanceMeasuresforLong TermRecoveryOffices FEMAestablishesoperatesandclosesLongTermRecoveryOfficeswithout standardizedpoliciesproceduresandperformancemeasuresTwoFederalstatutes theRobertTStaffordDisasterReliefandEmergencyAssistanceActandPostͲKatrina EmergencyManagementReformActof2006authorizeFEMAtoestablishfieldoffices includingLongTermRecoveryOfficesHoweverthesestatutesdonotprovide proceduralguidanceorperformancemeasuresfortheseoffices TheGovernmentPerformanceandResultsActof1993institutedagovernmentͲwide requirementthatagenciessetgoalsandreportannuallyonperformanceAccordingto theGovernmentAccountabilityOffice(GAO)mostFederalagenciesnowuse performancemeasurestotrackprogresstowardsgoals1 WithoutstandardizedpoliciesproceduresandperformancemeasuresFEMAofficials attheirdiscretiondeterminetheoveralloperationofLongTermRecoveryOffices FEMAregionalofficialssaidthatthefactorstheyconsiderindecidingtoopenorclosea LongTermRecoveryOfficeincludethevolumeofIndividualAssistanceapplications openedPublicAssistanceprojectapplicationsPublicAssistanceprojectrevisionsand HazardMitigationprojectssubmittedandtheamountofinsuranceclaimsanddollars paidWeaskedFEMAtoprovideuswithcopiesofthereportsitusedtodecidewhether
1PerformanceMeasurementandEvaluationDefinitionsandRelationshipsGAOͲ11Ͳ 646SPMay22011
wwwoigdhsgov 5 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
toopenorcloseaLongTermRecoveryOfficeTheywereabletoprovideuswithreports showingdataFEMAassessedfortheclosurebutnottheestablishmentofLongTerm RecoveryOfficesInadditionthesereportswerenotstandardizedandnoteveryregion usedthemFEMAofficialssaidthatthekeydecisionpointforestablishingandclosinga LongTermRecoveryOfficerestsontheregionalofficialsrsquoldquodisasterknowledgerdquofor determiningtheneedoperationandclosureoftheseofficesFEMAalsosaidtheability anddesireoftheaffectedStatetocloseoutdisasterrecoveryworkquicklyaffectsthe operationsandclosureoftheLongTermRecoveryOffices AsaresultofusingthissubjectivedecisionͲmakingprocessandtheaffectedStatesrsquo abilityanddesiretocloseoutthedisasterLongTermRecoveryOfficesremainopenfor inconsistenttimeframesTable1showsthatasofOctober2013FEMAhadopened sevenLongTermRecoveryOfficesandhadclosedfour Table1FEMALongTermRecoveryOffices1994ndash2013
FEMA Region State Opened ClosedStatus
LTRO1 Agein Months
Major Disasters Managed
TotalObligated DisasterFunds
Averageof Staff
RegionIV Mississippi 42006 Open 90 1 10070369164 970 RegionIV Florida 52005 12012 79 7 9252934569 200 RegionIV Alabama 62006 112009 40 1 1027409341 110 RegionVI Texas 42006 22009 33 2 1930083021 122 RegionVI Louisiana 52006 Open 89 4 33458602832 790 RegionVII Iowa 82009 102012 37 1 1909841777 104
RegionIX California 11994 Transitionedto anAreaField OfficeͲ2008
167 10 8095285213 315
TOTALS 26 $65744525917
SourceFEMAHeadquartersandFEMARegionIVVIVIIandIXFEMADisasterFinancialStatusReports fromAugust2013andFEMAFinancialInformationToolReportsfromNovember2013 1LongTermRecoveryOffice TotalObligatedDisasterFundsarecalculatedfromthetimeofthedisasterdeclarationuntildisaster closureorOctober312013whichevercamefirst InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyHurricane SandyislikelytobeoneofthemostcostlydisastersinhistoryAsofJanuary2014 FEMAhadalreadyobligatednearly$7billionindisasterfundsforHurricaneSandyin NewYorkandNewJerseyandemployedover700staffforLongTermRecoveryOffices inthosetwoStates FEMAofficialsrecognizethelackofstandardizedpoliciesproceduresandperformance measuresforLongTermRecoveryOfficesWithoutthesecontrolsinplaceFEMAisat riskformismanagementofFederaldisasterfundsandcannotensureconsistencyin
wwwoigdhsgov 6 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
establishingandmanagingtheseofficesHoweverseveralFEMAregionalofficialssaid theyhavedevelopedindividualpracticesfortheLongTermRecoveryOfficesusingtheir knowledgeofdisasteroperationsandregionalofficecapabilitiesAdditionallysince September2013severalFEMAregionalofficesbegansharingtheirpracticeswithFEMA RegionIIwhichisresponsibleforHurricaneSandyrecoveryinNewJerseyandNew YorkFinallybefore2008FEMAheadquartersdevelopedadraftdirectiveoutlining LongTermRecoveryOfficeoperationsHoweverFEMAheadquartersrsquoleadershiphas notimplementedthatdirective Conclusion FEMArisksmismanagingdisasterrelieffundsbecauseitdoesnottrackcostsor performancedataandhasnotcreatedandimplementedstandardizedpolicies proceduresandperformancemeasuresforLongTermRecoveryOfficesCorrecting thesedeficiencieswillprovideFEMAtheinformationandguidanceitneedsto determinewhetherLongTermRecoveryOfficesarecosteffectiveInadditionFEMA canbetterensureconsistencyinestablishingandmanagingtheseoffices
Recommendations
WerecommendthattheAssociateAdministratorforResponseandRecoveryFederal EmergencyManagementAgency Recommendation1Identifytrackandreportcostsandperformancedatathatshow costeffectivenessforLongTermRecoveryOffices Recommendation2Implementstandardizedpoliciesproceduresandperformance measurestoestablishoperateandcloseLongTermRecoveryOffices
wwwoigdhsgov 7 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ManagementCommentsandOIGAnalysis WereceivedandreviewedwrittencommentsonthedraftreportfromFEMArsquosAssociate AdministratorforPolicyProgramAnalysisandInternationalAffairsFEMAconcurswith ourrecommendations BasedontheinformationFEMAprovidedweconsiderrecommendation1asresolved andopenFEMAiscurrentlydeterminingthecosteffectivenessofvariousmodelsfor postͲdisastercoordinationanddeliveryofassistanceThisinitiativewillestablishcriteria fordeterminingthecosteffectivenessandapplicabilityofonemodelversusanother basedonhistoriccostdataandprojectionsofpotentialcostsavingsFEMAwillthen developdecisionͲmakingguidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessofLongTermRecoveryOfficesversustransitioningsupportto theFEMARegionorotheroptionsFEMArsquosestimatedcompletiondateisMarch31 2015 BasedontheinformationFEMAprovidedwealsoconsiderrecommendation2as resolvedandopenFEMAiscurrentlydocumentingtheprocessprocedures performancemeasureslessonslearnedandbestpracticesusedtoscopeandestablish theSandyRecoveryOfficeTheSandyRecoveryOfficeapproachandOIGfindingswill assisttheFEMAinitiativetoupdateandimplementpreviouslydevelopeddraft guidanceproceduresandperformancemeasurestoestablishoperateandcloseLong TermRecoveryOfficesFEMArsquosestimatedcompletiondateisMarch312015 AppendixBincludesacopyofthemanagementcommentsintheirentirety
wwwoigdhsgov 8 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment TheobjectiveofthisauditwastodeterminewhetherFEMArsquospoliciesproceduresand performancemeasuresforestablishingoperatingandclosingLongTermRecovery OfficesmeetFederalstatutesandareconsistentlyapplied WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA RegionsIVVIVIIandIXreviewedFederalstatutesandregulationsanddraftFEMA policiesandproceduresanalyzeddisastercostdataforthedisastersmanagedbythe sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013 UsingthedisastercostdataweestimatedtheLongTermRecoveryOfficesoperating costsForthisweusedtheoveralldisasteroperationsobligationsandexpendituresand eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery OfficesWethenadjustedthosecostsandobligationstoreflecttheestimatedcost attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober 2013WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery Officesandperformedotherproceduresconsiderednecessarytoaccomplishour objective WedidnotassesstheadequacyoftheagencyrsquosinternalcontrolsapplicabletoLong TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit objectives WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectivesWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectives
wwwoigdhsgov 9 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
toopenorcloseaLongTermRecoveryOfficeTheywereabletoprovideuswithreports showingdataFEMAassessedfortheclosurebutnottheestablishmentofLongTerm RecoveryOfficesInadditionthesereportswerenotstandardizedandnoteveryregion usedthemFEMAofficialssaidthatthekeydecisionpointforestablishingandclosinga LongTermRecoveryOfficerestsontheregionalofficialsrsquoldquodisasterknowledgerdquofor determiningtheneedoperationandclosureoftheseofficesFEMAalsosaidtheability anddesireoftheaffectedStatetocloseoutdisasterrecoveryworkquicklyaffectsthe operationsandclosureoftheLongTermRecoveryOffices AsaresultofusingthissubjectivedecisionͲmakingprocessandtheaffectedStatesrsquo abilityanddesiretocloseoutthedisasterLongTermRecoveryOfficesremainopenfor inconsistenttimeframesTable1showsthatasofOctober2013FEMAhadopened sevenLongTermRecoveryOfficesandhadclosedfour Table1FEMALongTermRecoveryOffices1994ndash2013
FEMA Region State Opened ClosedStatus
LTRO1 Agein Months
Major Disasters Managed
TotalObligated DisasterFunds
Averageof Staff
RegionIV Mississippi 42006 Open 90 1 10070369164 970 RegionIV Florida 52005 12012 79 7 9252934569 200 RegionIV Alabama 62006 112009 40 1 1027409341 110 RegionVI Texas 42006 22009 33 2 1930083021 122 RegionVI Louisiana 52006 Open 89 4 33458602832 790 RegionVII Iowa 82009 102012 37 1 1909841777 104
RegionIX California 11994 Transitionedto anAreaField OfficeͲ2008
167 10 8095285213 315
TOTALS 26 $65744525917
SourceFEMAHeadquartersandFEMARegionIVVIVIIandIXFEMADisasterFinancialStatusReports fromAugust2013andFEMAFinancialInformationToolReportsfromNovember2013 1LongTermRecoveryOffice TotalObligatedDisasterFundsarecalculatedfromthetimeofthedisasterdeclarationuntildisaster closureorOctober312013whichevercamefirst InJanuary2014FEMAopenedanadditionalLongTermRecoveryOfficeforHurricane SandyresponsiblefortherecoveryeffortsinNewYorkandNewJerseyHurricane SandyislikelytobeoneofthemostcostlydisastersinhistoryAsofJanuary2014 FEMAhadalreadyobligatednearly$7billionindisasterfundsforHurricaneSandyin NewYorkandNewJerseyandemployedover700staffforLongTermRecoveryOffices inthosetwoStates FEMAofficialsrecognizethelackofstandardizedpoliciesproceduresandperformance measuresforLongTermRecoveryOfficesWithoutthesecontrolsinplaceFEMAisat riskformismanagementofFederaldisasterfundsandcannotensureconsistencyin
wwwoigdhsgov 6 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
establishingandmanagingtheseofficesHoweverseveralFEMAregionalofficialssaid theyhavedevelopedindividualpracticesfortheLongTermRecoveryOfficesusingtheir knowledgeofdisasteroperationsandregionalofficecapabilitiesAdditionallysince September2013severalFEMAregionalofficesbegansharingtheirpracticeswithFEMA RegionIIwhichisresponsibleforHurricaneSandyrecoveryinNewJerseyandNew YorkFinallybefore2008FEMAheadquartersdevelopedadraftdirectiveoutlining LongTermRecoveryOfficeoperationsHoweverFEMAheadquartersrsquoleadershiphas notimplementedthatdirective Conclusion FEMArisksmismanagingdisasterrelieffundsbecauseitdoesnottrackcostsor performancedataandhasnotcreatedandimplementedstandardizedpolicies proceduresandperformancemeasuresforLongTermRecoveryOfficesCorrecting thesedeficiencieswillprovideFEMAtheinformationandguidanceitneedsto determinewhetherLongTermRecoveryOfficesarecosteffectiveInadditionFEMA canbetterensureconsistencyinestablishingandmanagingtheseoffices
Recommendations
WerecommendthattheAssociateAdministratorforResponseandRecoveryFederal EmergencyManagementAgency Recommendation1Identifytrackandreportcostsandperformancedatathatshow costeffectivenessforLongTermRecoveryOffices Recommendation2Implementstandardizedpoliciesproceduresandperformance measurestoestablishoperateandcloseLongTermRecoveryOffices
wwwoigdhsgov 7 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ManagementCommentsandOIGAnalysis WereceivedandreviewedwrittencommentsonthedraftreportfromFEMArsquosAssociate AdministratorforPolicyProgramAnalysisandInternationalAffairsFEMAconcurswith ourrecommendations BasedontheinformationFEMAprovidedweconsiderrecommendation1asresolved andopenFEMAiscurrentlydeterminingthecosteffectivenessofvariousmodelsfor postͲdisastercoordinationanddeliveryofassistanceThisinitiativewillestablishcriteria fordeterminingthecosteffectivenessandapplicabilityofonemodelversusanother basedonhistoriccostdataandprojectionsofpotentialcostsavingsFEMAwillthen developdecisionͲmakingguidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessofLongTermRecoveryOfficesversustransitioningsupportto theFEMARegionorotheroptionsFEMArsquosestimatedcompletiondateisMarch31 2015 BasedontheinformationFEMAprovidedwealsoconsiderrecommendation2as resolvedandopenFEMAiscurrentlydocumentingtheprocessprocedures performancemeasureslessonslearnedandbestpracticesusedtoscopeandestablish theSandyRecoveryOfficeTheSandyRecoveryOfficeapproachandOIGfindingswill assisttheFEMAinitiativetoupdateandimplementpreviouslydevelopeddraft guidanceproceduresandperformancemeasurestoestablishoperateandcloseLong TermRecoveryOfficesFEMArsquosestimatedcompletiondateisMarch312015 AppendixBincludesacopyofthemanagementcommentsintheirentirety
wwwoigdhsgov 8 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment TheobjectiveofthisauditwastodeterminewhetherFEMArsquospoliciesproceduresand performancemeasuresforestablishingoperatingandclosingLongTermRecovery OfficesmeetFederalstatutesandareconsistentlyapplied WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA RegionsIVVIVIIandIXreviewedFederalstatutesandregulationsanddraftFEMA policiesandproceduresanalyzeddisastercostdataforthedisastersmanagedbythe sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013 UsingthedisastercostdataweestimatedtheLongTermRecoveryOfficesoperating costsForthisweusedtheoveralldisasteroperationsobligationsandexpendituresand eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery OfficesWethenadjustedthosecostsandobligationstoreflecttheestimatedcost attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober 2013WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery Officesandperformedotherproceduresconsiderednecessarytoaccomplishour objective WedidnotassesstheadequacyoftheagencyrsquosinternalcontrolsapplicabletoLong TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit objectives WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectivesWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectives
wwwoigdhsgov 9 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
establishingandmanagingtheseofficesHoweverseveralFEMAregionalofficialssaid theyhavedevelopedindividualpracticesfortheLongTermRecoveryOfficesusingtheir knowledgeofdisasteroperationsandregionalofficecapabilitiesAdditionallysince September2013severalFEMAregionalofficesbegansharingtheirpracticeswithFEMA RegionIIwhichisresponsibleforHurricaneSandyrecoveryinNewJerseyandNew YorkFinallybefore2008FEMAheadquartersdevelopedadraftdirectiveoutlining LongTermRecoveryOfficeoperationsHoweverFEMAheadquartersrsquoleadershiphas notimplementedthatdirective Conclusion FEMArisksmismanagingdisasterrelieffundsbecauseitdoesnottrackcostsor performancedataandhasnotcreatedandimplementedstandardizedpolicies proceduresandperformancemeasuresforLongTermRecoveryOfficesCorrecting thesedeficiencieswillprovideFEMAtheinformationandguidanceitneedsto determinewhetherLongTermRecoveryOfficesarecosteffectiveInadditionFEMA canbetterensureconsistencyinestablishingandmanagingtheseoffices
Recommendations
WerecommendthattheAssociateAdministratorforResponseandRecoveryFederal EmergencyManagementAgency Recommendation1Identifytrackandreportcostsandperformancedatathatshow costeffectivenessforLongTermRecoveryOffices Recommendation2Implementstandardizedpoliciesproceduresandperformance measurestoestablishoperateandcloseLongTermRecoveryOffices
wwwoigdhsgov 7 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ManagementCommentsandOIGAnalysis WereceivedandreviewedwrittencommentsonthedraftreportfromFEMArsquosAssociate AdministratorforPolicyProgramAnalysisandInternationalAffairsFEMAconcurswith ourrecommendations BasedontheinformationFEMAprovidedweconsiderrecommendation1asresolved andopenFEMAiscurrentlydeterminingthecosteffectivenessofvariousmodelsfor postͲdisastercoordinationanddeliveryofassistanceThisinitiativewillestablishcriteria fordeterminingthecosteffectivenessandapplicabilityofonemodelversusanother basedonhistoriccostdataandprojectionsofpotentialcostsavingsFEMAwillthen developdecisionͲmakingguidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessofLongTermRecoveryOfficesversustransitioningsupportto theFEMARegionorotheroptionsFEMArsquosestimatedcompletiondateisMarch31 2015 BasedontheinformationFEMAprovidedwealsoconsiderrecommendation2as resolvedandopenFEMAiscurrentlydocumentingtheprocessprocedures performancemeasureslessonslearnedandbestpracticesusedtoscopeandestablish theSandyRecoveryOfficeTheSandyRecoveryOfficeapproachandOIGfindingswill assisttheFEMAinitiativetoupdateandimplementpreviouslydevelopeddraft guidanceproceduresandperformancemeasurestoestablishoperateandcloseLong TermRecoveryOfficesFEMArsquosestimatedcompletiondateisMarch312015 AppendixBincludesacopyofthemanagementcommentsintheirentirety
wwwoigdhsgov 8 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment TheobjectiveofthisauditwastodeterminewhetherFEMArsquospoliciesproceduresand performancemeasuresforestablishingoperatingandclosingLongTermRecovery OfficesmeetFederalstatutesandareconsistentlyapplied WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA RegionsIVVIVIIandIXreviewedFederalstatutesandregulationsanddraftFEMA policiesandproceduresanalyzeddisastercostdataforthedisastersmanagedbythe sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013 UsingthedisastercostdataweestimatedtheLongTermRecoveryOfficesoperating costsForthisweusedtheoveralldisasteroperationsobligationsandexpendituresand eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery OfficesWethenadjustedthosecostsandobligationstoreflecttheestimatedcost attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober 2013WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery Officesandperformedotherproceduresconsiderednecessarytoaccomplishour objective WedidnotassesstheadequacyoftheagencyrsquosinternalcontrolsapplicabletoLong TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit objectives WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectivesWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectives
wwwoigdhsgov 9 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ManagementCommentsandOIGAnalysis WereceivedandreviewedwrittencommentsonthedraftreportfromFEMArsquosAssociate AdministratorforPolicyProgramAnalysisandInternationalAffairsFEMAconcurswith ourrecommendations BasedontheinformationFEMAprovidedweconsiderrecommendation1asresolved andopenFEMAiscurrentlydeterminingthecosteffectivenessofvariousmodelsfor postͲdisastercoordinationanddeliveryofassistanceThisinitiativewillestablishcriteria fordeterminingthecosteffectivenessandapplicabilityofonemodelversusanother basedonhistoriccostdataandprojectionsofpotentialcostsavingsFEMAwillthen developdecisionͲmakingguidanceforidentifyingtrackingandreportingontheneed forandcosteffectivenessofLongTermRecoveryOfficesversustransitioningsupportto theFEMARegionorotheroptionsFEMArsquosestimatedcompletiondateisMarch31 2015 BasedontheinformationFEMAprovidedwealsoconsiderrecommendation2as resolvedandopenFEMAiscurrentlydocumentingtheprocessprocedures performancemeasureslessonslearnedandbestpracticesusedtoscopeandestablish theSandyRecoveryOfficeTheSandyRecoveryOfficeapproachandOIGfindingswill assisttheFEMAinitiativetoupdateandimplementpreviouslydevelopeddraft guidanceproceduresandperformancemeasurestoestablishoperateandcloseLong TermRecoveryOfficesFEMArsquosestimatedcompletiondateisMarch312015 AppendixBincludesacopyofthemanagementcommentsintheirentirety
wwwoigdhsgov 8 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment TheobjectiveofthisauditwastodeterminewhetherFEMArsquospoliciesproceduresand performancemeasuresforestablishingoperatingandclosingLongTermRecovery OfficesmeetFederalstatutesandareconsistentlyapplied WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA RegionsIVVIVIIandIXreviewedFederalstatutesandregulationsanddraftFEMA policiesandproceduresanalyzeddisastercostdataforthedisastersmanagedbythe sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013 UsingthedisastercostdataweestimatedtheLongTermRecoveryOfficesoperating costsForthisweusedtheoveralldisasteroperationsobligationsandexpendituresand eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery OfficesWethenadjustedthosecostsandobligationstoreflecttheestimatedcost attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober 2013WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery Officesandperformedotherproceduresconsiderednecessarytoaccomplishour objective WedidnotassesstheadequacyoftheagencyrsquosinternalcontrolsapplicabletoLong TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit objectives WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectivesWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectives
wwwoigdhsgov 9 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment TheobjectiveofthisauditwastodeterminewhetherFEMArsquospoliciesproceduresand performancemeasuresforestablishingoperatingandclosingLongTermRecovery OfficesmeetFederalstatutesandareconsistentlyapplied WeinterviewedFEMAHeadquartersofficialsandFEMARegionalofficialsinFEMA RegionsIVVIVIIandIXreviewedFederalstatutesandregulationsanddraftFEMA policiesandproceduresanalyzeddisastercostdataforthedisastersmanagedbythe sevenLongTermRecoveryOfficesfortheperiodJanuary1994throughOctober2013 UsingthedisastercostdataweestimatedtheLongTermRecoveryOfficesoperating costsForthisweusedtheoveralldisasteroperationsobligationsandexpendituresand eliminatedcostsnotdirectlyattributedtotheoperationoftheLongTermRecovery OfficesWethenadjustedthosecostsandobligationstoreflecttheestimatedcost attributedtotheLongTermRecoveryOfficesandotherdisasterofficesthroughOctober 2013WealsocompiledstaffinganddisasterfunddataforNewJerseyandNewYorkfor HurricaneSandytodetermineitscurrentfinancialimpactonLongTermRecovery Officesandperformedotherproceduresconsiderednecessarytoaccomplishour objective WedidnotassesstheadequacyoftheagencyrsquosinternalcontrolsapplicabletoLong TermRecoveryOfficeoperationsbecauseitwasnotnecessarytoaccomplishouraudit objectives WeconductedthisperformanceauditbetweenJune2013andMarch2014pursuantto theInspectorGeneralActof1978asamendedandaccordingtogenerallyaccepted governmentauditingstandardsThosestandardsrequirethatweplanandperformthe audittoobtainsufficientappropriateevidencetoprovideareasonablebasisforour findingsandconclusionsbaseduponourauditobjectivesWebelievethattheevidence obtainedprovidesareasonablebasisforourfindingsandconclusionsbaseduponour auditobjectives
wwwoigdhsgov 9 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraftLetterReport
wwwoigdhsgov 10 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
wwwoigdhsgov 11 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC ReportDistribution
DepartmentofHomelandSecurity Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs DHSComponentLiaison ChiefPrivacyOfficer FederalEmergencyManagementAgency
Administrator ChiefofStaff AssociateAdministratorResponseandRecovery DirectorOfficeofRegionalOperations ChiefFinancialOfficer AssociateAdministratorforPolicyandProgramAnalysis DirectorProgramAnalysisandEvaluationDivision DirectorRiskManagementandCompliance OIGPortfolioManagerOfficeofPolicyandProgramAnalysis OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer RecoveryAccountabilityandTransparencyBoard DirectorInvestigationsRecoveryAccountabilityandTransparencyBoard
wwwoigdhsgov 12 OIGͲ15Ͳ06ͲD
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Congress CongressionalOversightandAppropriationsCommittees
wwwoigdhsgov 13 OIGͲ15Ͳ06ͲD
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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
ADDITIONAL INFORMATION AND COPIES
To view this and any of our other reports please visit our website at wwwoigdhsgov
For further information or questions please contact Office of Inspector General Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov Follow us on Twitter at dhsoig
OIG HOTLINE
To report fraud waste or abuse visit our website at wwwoigdhsgov and click on the red Hotline tab If you cannot access our website call our hotline at (800) 323-8603 fax our 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