	Background

When DHS was created in March 2003, ODP was transferred from the  Justice Department’s OJP to DHS’s Directorate of Border and  Transportation Security. In addition, other preparedness  grant programs from agencies within DHS were transferred to SLGCP. ODP Established Grant Award Procedures for States and Localities That Support Efforts to Improve Accountability in State Preparedness Planning

Over time, ODP has developed and modified its procedures for awarding  grants to states, governing how states distribute funds to local  jurisdictions, and facilitating reimbursements for states and localities  purchasing first responder equipment and services. ODP Gave States Flexibility in Administering and Distributing Grants

For fiscal years 2002 and 2003, ODP developed procedures and guidelines  for awarding SDPP/SHSGP and UASI grants to states that enabled states to  distribute grant funds and states and localities to expend funds and seek  reimbursement for first responder equipment or services they purchased  directly. ODP directed the states in fiscal year 2003 to update their homeland  security strategies to better reflect post-September 11 realities and to  identify progress on the priorities originally outlined in the initial  strategies. ODP Has Begun Drafting National Preparedness Standards to Better Assess First Responder Needs

In addition to the issues raised about the accuracy of the fiscal year 2003  needs assessments, other factors may affect ODP’s and states’ abilities to  identify and assess first responder needs and priorities. For fiscal years 2002 and 2003, ODP did not set formal monitoring goals,  such as a specific number of on-site visits to be made in a given year. Congress, ODP, States, and Localities Have Acted to Expedite Grant Awards, but Challenges Remain

		Statutory Deadlines Were Imposed to Expedite the Grant Award and Distribution Process

Congress, the Conference of Mayors, some state and local officials, and  others expressed concerns about the time ODP was taking to award grant  funds to states and for states to transfer grant funds to local jurisdictions. According to ODP data for SHSGP II, ODP made the grant  application available to states within the required deadline and awarded  over 90 percent of the grants within 14 days of receiving the applications. For SHSGP II, the appropriations statute also mandated that states submit  grant applications within 30 days of the grant announcement. To further assist states in expediting the transfer of grant funds to local  jurisdictions, ODP also modified its requirements for documentation to be  submitted as part of the grant application process for fiscal years 2002 and  2003. Agency Comments and Our Evaluation

DHS generally agreed with the report’s findings. To determine how SHSGP and UASI were administered in fiscal years 2002  and 2003 so that ODP could ensure that grant funds were spent in  accordance with grant guidance and state preparedness planning, we  interviewed ODP officials and homeland security and grant management  officials and first responders in the five selected states and from selected  local jurisdictions within those states. To determine the time frames for awarding and distributing SHSGP and  UASI grants established by ODP grant guidance or by law, and how these  time frames affected the grant cycle, we obtained and analyzed  appropriations acts and program guidelines for the grant programs.
Why GAO Did This Study

The Office for Domestic Preparedness (ODP)--originally established in 1998 within the Department of Justice to help state and local first responders acquire specialized training and equipment needed to respond to terrorist incidents--was transferred to the Department of Homeland Security upon its creation in March 2003. After September 11, 2001, the scope and size of ODP's grant programs expanded. For example, from fiscal year 2001 through fiscal year 2003, ODP grants awarded to states and some urban areas grew from about $91 million to about $2.7 billion. This growth raised questions about the ability of ODP and states to ensure that the domestic preparedness grant programs--including statewide and urban area grants--are managed effectively and efficiently. GAO addressed (1) how statewide and urban area grants were administered in fiscal years 2002 and 2003 so that ODP could ensure that grant funds were spent in accordance with grant guidance and state preparedness planning and (2) what time frames Congress and ODP established for awarding and distributing grants, and how time frames affected the grant cycle.

What GAO Found

ODP has established and refined grant award procedures for states and localities to improve accountability in state preparedness planning. For fiscal years 2002 and 2003, ODP developed procedures and guidelines for awarding statewide and urban area grants to states and for determining how states and localities could expend funds and seek reimbursement for first responder equipment or services. ODP gave states flexibility by allowing them to determine how grant funds were to be managed and distributed within their states. In fiscal year 2003, ODP required states to update homeland security strategies and related needs assessments prepared in earlier years. These efforts are intended to guide states and localities in targeting grant funds. ODP also took steps to improve grant oversight procedures. Finally, to help meet mandates contained in a presidential directive, ODP has begun drafting national preparedness standards to identify and assess gaps in first responder capabilities on a national basis. Congress and ODP have acted to expedite grant awards by setting time limits for grant application, award, and distribution processes. For fiscal year 2002 through February 2003, the appropriations statutes did not require ODP to award grant funds to states within a specific time frame. Then, in April 2003, the supplemental appropriations act imposed new deadlines on ODP and the states. As a result, ODP reported that all states submitted grant applications within the mandated 30 days of the grant announcement, and that over 90 percent of grants were awarded within the mandated 15 days of receipt of the applications. ODP also took steps to expedite the transfer of funds from states to local jurisdictions. Nevertheless, the ability of states and localities to spend grant funds expeditiously was complicated by the need to adhere to various legal and procurement requirements. ODP is identifying best practices to help states address the issue. In reviewing a draft of the report, the Department of Homeland Security generally agreed with GAO's findings; however, it questioned whether the report's title adequately reflected the agency's progress in meeting grant management challenges.