States Allocated Nearly $400 Million in CZMP Funds during Fiscal Years 2008 through 2013 for a Wide Range of Coastal Management Activities

During fiscal years 2008 through 2013, the 34 participating states  allocated a total of nearly $400 million in CZMP funds for a variety of  activities, generally related to the broad goals for state programs outlined  in the Coastal Zone Management Act. Examples of activities for which participating states allocated CZMP funds  during fiscal years 2008 through 2013 in each of the six focus areas  include the following:
Government coordination. Coastal habitat. Limitations Exist with NOAA’s Performance Assessment Tools, and NOAA Makes Limited Use of Performance Information

NOAA’s two primary performance assessment tools, the CZMP  performance measurement system and its state program evaluations,  have limitations, even with changes NOAA has made since 2008, and  NOAA uses the performance information it collects to a limited extent in  managing the CZMP. We found that NOAA’s CZMP performance  measurement system does not align with some key attributes of  successful performance measures. Furthermore, NOAA makes limited use of the performance information it  collects—for instance, NOAA does not use data from its performance  measurement system or its evaluations of state programs to improve  implementation of the CZMP at the national level—and, as a result, may  not be realizing the full benefit of collecting such information. For  instance, in 2011, NOAA eliminated its coastal water quality focus area— corresponding to one of the six focus areas based on goals of the CZMP  outlined in the act. Balance, or having a set of measures  that cover a program’s various goals, is a key attribute of successful  performance measures. NOAA officials indicated that they eliminated the coastal  water quality focus area based on a 2011 performance measurement  system workgroup’s recommendation to streamline the measurement  system. By requiring states to collect and  submit financial data similar to data that they already provide in their  cooperative agreements and making limited use of these data, NOAA  may be unnecessarily burdening state programs with data collection  requirements. Without a documented  approach for how it plans to assess its CZMP performance measurement  system—including the scope and criteria it will use, such as how it will  ensure its measures align with key attributes of successful performance  measures—NOAA cannot demonstrate that its intended effort will  improve its CZMP performance measurement system. NOAA Cannot Ensure That Its Revised Process for Surveying Stakeholders to Inform State Program Evaluations Will Produce Complete and Unbiased Information

In 2013, NOAA revised its process for conducting state program  evaluations, which are required under the Coastal Zone Management Act  to assess state programs’ adherence to the act’s requirements, but we  identified a limitation in NOAA’s method for sampling stakeholders under  the revised process. According to NOAA documents, the purpose of the  revisions was to conduct evaluations more efficiently, at a reduced cost,  while continuing to meet evaluation requirements outlined in the act. In the absence of additional criteria for selecting stakeholders to  survey, NOAA may select a sample of stakeholders whose work with a  state program does not span all of the act’s goals, potentially leaving  NOAA without information to inform its evaluation of a state’s  performance on one or more goals. However, NOAA has not published additional similar reports, and has  not used performance measurement system data for other purposes. NOAA’s strategic plan for its merged coastal management office  recognizes the importance of using and reporting performance  information. As part of its intended review of the CZMP performance measurement  system and in consideration of how it intends to use the performance  information, document the approach it plans to take to analyze and  revise, as appropriate, the performance measures, and in so doing  ensure the analysis considers key attributes of successful  performance measures, such as balance and limited overlap. GAO staff who made major contributions to  this report are listed in appendix V.

Appendix I: Objectives, Scope, and Methodology

Focusing on National Coastal Zone Management Program (CZMP)  activities since our 2008 report, our objectives were to examine (1) how  participating states allocated CZMP funds awarded in fiscal years 2008  through 2013 and (2) how the National Oceanic and Atmospheric  Administration’s (NOAA) primary performance assessment tools have  changed and the extent to which NOAA uses performance information to  help manage the CZMP. We reviewed NOAA’s analysis of states’ allocations of CZMP  funding for fiscal years 2008 through 2013, which was based on NOAA’s  review of its cooperative agreements for federal funding with states. Measure provides new information beyond that  provided by other data sources.
Why GAO Did This Study

The U.S. coast is home to more than half the U.S. population and integral to the nation's economy. Under the Coastal Zone Management Act, NOAA administers the CZMP, a federal-state partnership that encourages states to balance development with protection of coastal zones in exchange for federal financial assistance and other incentives. In 2008, GAO reviewed the CZMP and recommended improvements for CZMP performance assessment tools.
A fiscal year 2013 appropriations committee report mandated GAO to review NOAA's implementation of the act. This report examines (1) how states allocated CZMP funds awarded in fiscal years 2008 through 2013 and (2) how NOAA's primary performance assessment tools have changed since GAO's 2008 report and the extent to which NOAA uses performance information in managing the CZMP. GAO reviewed laws, guidance, and performance-related reports; analyzed CZMP funding data for fiscal years 2008-2013; and interviewed NOAA officials and a nongeneralizeable sample of officials from seven states selected for receiving the most fiscal year 2012 funding in each of NOAA's regions.

What GAO Found

During fiscal years 2008 through 2013, the 34 states participating in the National Oceanic and Atmospheric Administration's (NOAA) National Coastal Zone Management Program (CZMP) allocated nearly $400 million in CZMP funds for a variety of activities. States allocated this funding for activities spanning six broad focus areas based on goals outlined in the Coastal Zone Management Act. For example, states allocated about a quarter of their CZMP funding to the coastal habitat focus area, according to NOAA's analysis. Coastal habitat activities encompassed a variety of actions to protect, restore, or enhance coastal habitat areas, such as habitat mapping or restoration planning efforts of marsh habitats for fish and wildlife and enhanced recreational opportunities.
NOAA's two primary performance assessment tools—its CZMP performance measurement system and state program evaluations—have limitations, even with changes NOAA made since 2008, and NOAA makes limited use of the performance information it collects. Regarding the performance measurement system, NOAA has made changes such as taking steps intended to improve the reliability of data it collects. However, its current measurement system does not align with some key attributes of successful performance measures, including the following:
Balance: a balanced set of measures ensures that a program's various goals are covered. NOAA removed the coastal water quality focus area, one of six focus areas based on goals in the act, to streamline the performance measurement system. As a result, the system may not provide a complete picture of states' overall performance across all focus areas based on goals in the act.
Limited overlap: measures should produce new information beyond what is provided by other data sources . NOAA's system includes measures that overlap with financial data provided in cooperative agreements. By requiring states to submit financial data available through other sources, NOAA may be unnecessarily burdening states with data collection requirements.
NOAA plans to review and potentially revise its measurement system, but it has not documented the approach it plans to take, including how the measures will align with key attributes of successful performance measures. Regarding state program evaluations, in 2013, NOAA revised its process to conduct evaluations more efficiently, at a reduced cost. However, GAO identified a limitation in NOAA's method for sampling stakeholders to survey under its revised process that may result in the selection of stakeholders that do not span all six focus areas based on goals of the act. Finally, NOAA makes limited use of the performance information it collects from these tools. For example, since it began collecting performance measurement data in 2008, NOAA used the data once to report on accomplishments. NOAA recognizes the importance of using performance information to improve program implementation, but it has not documented a strategy for how it will use its performance information to manage the program. As a result, NOAA may not be realizing the full benefit of collecting performance information.

What GAO Recommends

GAO recommends that NOAA document an approach to analyze and revise, as appropriate, its performance measures against key attributes, revise its process for selecting stakeholders to survey in its state program evaluations, and document a strategy for using the performance information it collects. NOAA concurred with the recommendations.