Experiences from past disasters can provide states and  local communities with potential good practices to consider. Create a Clear, Implementable, and Timely Recovery Plan

A recovery plan can provide state and local governments with a valuable  tool to document and communicate recovery goals, decisions, and  priorities—in effect, they can provide a roadmap for the recovery process. Build State and Local Capacity for Implementing Federal Disaster Programs

Given the lead role that state and local governments play in disaster  recovery, their ability to act effectively directly affects recovery after a  major disaster. In the past, affected jurisdictions have used  loans from a variety of sources to enhance local financial capacity. Strengthen technical capacity. State and local governments face the  challenge of implementing the wide range of federal disaster programs. Implement Strategies for Business Recovery

Business recovery is a key element of a community’s recovery after a  major disaster. Provide technical assistance to help businesses adapt to  postdisaster market conditions. Adopt a Comprehensive Approach to Combating Fraud, Waste, and Abuse

A persistent challenge facing government at all levels is the risk of fraud,  waste, and abuse of funds targeted for disaster assistance. Both disaster victims and public funds  are at risk. To help protect its residents from  contractor fraud after the 1997 Red River flood, the City of Grand Forks  established a required credentialing program for contractors. In an effort to minimize instances of contractor fraud after the   2008 Midwest floods, the City of Cedar Rapids, Iowa created a similar  contractor certification program modeled after Grand Forks’ program. Challenges with FEMA’s Public Assistance Grant Program After the 2005 Gulf Coast Hurricanes Provide Potential Lessons

The Public Assistance grant program, administered by FEMA, is one of  two key programs the federal government has used to provide federal  rebuilding assistance to Gulf Coast states after the 2005 Gulf Coast  hurricanes. These included using program flexibilities  to rebuild to the postdisaster needs of grant applicants and determining  the scope of projects. For example, some applicants in Louisiana told us of the  need to repeatedly resubmit key project documents because of the lack of  an effective system to share such documentation. To help the Department of Homeland Security improve the operation of  the Public Assistance grant program and build on some of the actions it  has taken, our December 2008 report contained a number of  recommendations, including that FEMA improve collaboration and  information sharing within the Public Assistance process by identifying  and disseminating practices that facilitate more effective communication  among federal, state, and local entities communicating and tracking  project information. In commenting on a draft of our report, the  department generally agreed with our recommendations and noted that  FEMA is making efforts to improve collaboration and information sharing  within the Public Assistance process. Conclusions

The insights and lessons gained from the recovery experiences of past  major disasters provide a potentially valuable source to all levels of  government as they seek to meet the many challenges and complexities of  recovering from a major disaster. While there is no one right way for state  and local jurisdictions to manage recovery, the practices I have presented  today provide a basic set of considerations and approaches for  communities recovering from Hurricanes Ike and Gustav as well as  disasters yet to come. Our work on  one key federal recovery program—FEMA’s Public Assistance grant  program—has identified several specific actions that can be taken to  address the operational challenges that the program faced in the wake of  the 2005 hurricanes. Opportunities exist for the federal government to take  steps in the future to continue to refine this program to better address  these challenges that could be faced again by Gulf Coast states recovering  from Hurricanes Ike and Gustav, and in advance of future disasters.
Why GAO Did This Study

Recovery from major disasters is a complex undertaking that involves the combined efforts of federal, state, and local government in order to succeed. While the federal government provides a significant amount of financial and technical assistance for recovery, state and local jurisdictions work closely with federal agencies to secure and make use of those resources. This testimony describes lessons and insights that GAO has identified from review of past disasters, which may be useful to inform recovery efforts in the wake of Hurricanes Ike and Gustav, as well as disasters yet to come. These lessons come from two reports GAO recently released last fall on disaster recovery. The first draws on the experiences of communities that have recovered from previous major disasters in order to help inform recovery efforts in the wake of Hurricanes Ike and Gustav as well as the 2008 Midwest floods. The second examines the implementation of the Federal Emergency Management Agency's (FEMA) Public Assistance grant program and identifies several actions that the Department of Homeland Security can take to improve operations of that program. These include improving information sharing and enhancing continuity and communication. Commenting on a draft of that report, the department generally agreed with our recommendations. In doing this work, GAO interviewed federal, state, and local officials involved in recovery and reviewed relevant documents, data, and laws.

What GAO Found

Lessons from past disasters provide a potentially valuable source of information for all levels of government as they seek to meet the many challenges of recovering from a major disaster. For affected state and local jurisdictions, good practices to consider include the following: (1) Creating a clear, implementable, and timely recovery plan can provide communities with a road map for the recovery process. Just 2 months after the 1995 Kobe earthquake in Japan, the city created a recovery plan with these elements. (2) Providing financial and technical capacity facilitates jurisdictions' ability to implement federal disaster programs. For example, loans and technical assistance provided after past disasters helped communities better navigate the wide range of federal disaster programs. (3) Implementing business recovery strategies to minimize business relocations helps small businesses adapt to postdisaster market conditions. For example, to encourage businesses to remain in the city Grand Forks after the 1997 flood, the city forgave loans for businesses that stayed in the city. (4) Adopting a comprehensive approach toward combating fraud, waste, and abuse protects both disaster victims from contractor fraud and public funds from fraudulent applicants. Controls to combat such activities before, during, and after a disaster can deter such activities, including instances of contractor fraud. On the federal level, experiences with FEMA's Public Assistance grant program after the 2005 Gulf Coast hurricanes illustrated a variety of challenges in the day-to-day operation of the program that could be faced again by Gulf Coast states recoveringfrom Hurricanes Ike and Gustav or other disasters in the future. These include the following: (1) Challenges using program flexibilities to respond to the postdisaster needs of grant applicants and determining project scope. For example, applicants reported needing additional flexibility when rebuilding to address significant population changes after the storm. (2) Challenges in sharing information among federal, state, and local officials during project development that at times slowed the process. For example, some applicants in Louisiana told us of the need to repeatedly resubmit key project documents because of the lack of an effective system to share such documentation. Opportunities exist for the federal government to further refine FEMA's Public Assistance grant program to better address these and other challenges as recovery continues on the Gulf Coast and in advance of future disasters.