	FEMA Has Taken Actions to Address Grant Management Concerns but Needs Better Coordination

DHS and FEMA have streamlined application and award processes,  enhanced the use of risk management principles in its grant programs,  and proposed consolidation of its various grant programs to address grant  management concerns. In February 2012, we reported that better  coordination and improved data collection could help FEMA identify and  mitigate potential unnecessary duplication among four overlapping grant  programs—the Homeland Security Grant Program, the Urban Areas  Security Initiative, the Port Security Grant Program, and the Transit  Security Grant Program. In November 2011, we reported that DHS had made modifications to  enhance the Port Security Grant Program’s risk assessment model’s  vulnerability element for fiscal year 2011. Specifically, DHS modified  the vulnerability equation to recognize that different ports have  different vulnerability levels. FEMA Needs Better Coordination and Improved Data Collection to Reduce Risk of Unnecessary Duplication

Despite these continuing efforts to enhance preparedness grant  management, we identified multiple factors in our February 2012 report  that contributed to the risk of FEMA potentially funding unnecessarily  duplicative projects across the four grant programs we reviewed—the  Homeland Security Grant Program, the Urban Areas Security Initiative,  the Port Security Grant Program, and the Transit Security Grant  Program.and geographic locations, combined with differing levels of information  that FEMA had available regarding grant projects and recipients. FEMA made award decisions for all four grant programs with  differing levels of information. However, this  delegation also contributed to FEMA having less visibility over some grant  applications. FEMA lacked a process to coordinate application reviews across the  four grant programs. In February 2012, we reported that grant  applications were reviewed separately by program and were not  compared across each other to determine where possible unnecessary  duplication may occur. Thus, we recommended that FEMA take actions to identify and mitigate  any unnecessary duplication in these programs, such as collecting more  complete project information as well as exploring opportunities to  enhance FEMA’s internal coordination and administration of the  programs. In commenting on the report, DHS agreed and identified  planned actions to improve visibility and coordination across programs  and projects. FEMA Has Proposed Changes to Enhance Preparedness Grant Management, but these Changes May Create Challenges

In the President’s Fiscal Year 2013 budget request to Congress, FEMA  has proposed consolidating its various preparedness grant programs— with the exception of the Emergency Management Performance Grants  and Assistance to Fire Fighters Grants—into a single, comprehensive  preparedness grant program called the National Preparedness Grant  Program (NPGP) in fiscal year 2013. In March 2012, FEMA’s GPD announced that  FEMA has established a website to solicit input from stakeholders on how  best to implement the new program. They know the  threats to their local areas and the capabilities needed to address them. For example, DHS first developed plans in 2004 to measure  preparedness by assessing capabilities, but these efforts have been  repeatedly delayed and are not yet complete. DHS and FEMA’s Longstanding Plans to Develop and Implement a National Assessment of Preparedness Have Not Been Fulfilled

Since 2004, DHS and FEMA have initiated a variety of efforts to develop  a system of measuring preparedness. For example, we reported in July 2005 that DHS had identified potential  challenges in gathering the information needed to assess capabilities,  including determining how to aggregate data from federal, state, local,  and tribal governments and others and integrating self-assessment and  external assessment approaches. Nonetheless, DHS and FEMA have had difficulty overcoming the  challenges we reported in July 2005 and April 2009 in establishing a  system of metrics to assess national preparedness capabilities. In March 2011, we reported that FEMA’s efforts to develop and  implement a comprehensive, measurable, national preparedness  assessment of capability and gaps were not yet complete and suggested  that Congress consider limiting preparedness grant funding until FEMA  completes a national preparedness assessment of capability gaps at  each level based on tiered, capability-specific performance objectives to  enable prioritization of grant funding. In April 2011, Congress passed  the fiscal year 2011 appropriations act for DHS, which reduced funding  for FEMA preparedness grants by $875 million from the amount  requested in the President’s fiscal year 2011 budget. The consolidated  appropriations act for fiscal year 2012 appropriated $1.7 billion for FEMA  Preparedness grants, $1.28 billion less than requested. For example, FEMA has not yet developed national preparedness  capability requirements based on established metrics for the core  capabilities to provide a framework for national preparedness  assessments.
Why GAO Did This Study

From fiscal years 2002 through 2011, the federal government appropriated over $37 billion to the Department of Homeland Securitys (DHS) preparedness grant programs to enhance the capabilities of state and local governments to prevent, protect against, respond to, and recover from terrorist attacks. DHS allocated $20.3 billion of this funding to grant recipients through four of the largest preparedness grant programsthe State Homeland Security Program, the Urban Areas Security Initiative, the Port Security Grant Program, and the Transit Security Grant Program. The Post-Katrina Emergency Management Reform Act of 2006 requires the Federal Emergency Management Agency (FEMA) to develop a national preparedness system and assess preparedness capabilitiescapabilities needed to respond effectively to disasters. FEMA could then use such a system to help it prioritize grant funding. This testimony addresses the extent to which DHS and FEMA have made progress in managing preparedness grants and measuring preparedness by assessing capabilities and addressing related challenges. GAOs comments are based on products issued from April 2002 through February 2012 and selected updates conducted in March 2012.

What GAO Found

DHS and FEMA have taken actions with the goal of enhancing management of preparedness grants, but better project information and coordination could help FEMA identify and mitigate the risk of unnecessary duplication among grant applications. Specifically, DHS and FEMA have taken actions to streamline the application and award processes and have enhanced their use of risk management for allocating grants. For example, in November 2011, GAO reported that DHS modified its risk assessment model for the Port Security Grant Program by recognizing that different ports have different vulnerability levels. However, in February 2012, GAO reported that FEMA made award decisions for four of its grant programsthe State Homeland Security Grant Program, the Urban Area Security Initiative, the Port Security Grant Program, and the Transit Security Grant Programwith differing levels of information, which contributed to the risk of funding unnecessarily duplicative projects. GAO also reported that FEMA did not have a process to coordinate application reviews across the four grant programs. Rather, grant applications were reviewed separately by program and were not compared across each other to determine where possible unnecessary duplication may occur. Thus, GAO recommended that (1) FEMA collect project information with the level of detail needed to better position the agency to identify any potential unnecessary duplication within and across the four grant programs, weighing any additional costs of collecting this data and (2) explore opportunities to enhance FEMAs internal coordination and administration of the programs to identify and mitigate the potential for any unnecessary duplication. DHS agreed and identified planned actions to improve visibility and coordination across programs and projects. FEMA has proposed consolidating the majority of its various preparedness grant programs into a single, comprehensive preparedness grant program called the National Preparedness Grant Program (NPGP) in fiscal year 2013; however, this may create new challenges. For example, allocations under the NPGP would rely heavily on a states risk assessment, but grantees have not yet received guidance on how to conduct the risk assessment process. FEMA has established a website to solicit input from stakeholders on how best to implement the program.
DHS and FEMA have had difficulty implementing longstanding plans and overcoming challenges in assessing capabilities, such as determining how to validate and aggregate data from federal, state, local, and tribal governments. For example, DHS first developed plans in 2004 to measure preparedness by assessing capabilities, but these efforts have been repeatedly delayed. In March 2011, GAO reported that FEMAs efforts to develop and implement a comprehensive, measurable, national preparedness assessment of capability and gaps were not yet complete and suggested that Congress consider limiting preparedness grant funding until FEMA completes a national preparedness assessment of capability gaps based on tiered, capability-specific performance objectives to enable prioritization of grant funding. In April 2011, Congress passed the fiscal year 2011 appropriations act for DHS that reduced funding for FEMA preparedness grants by $875 million from the amount requested in the Presidents fiscal year 2011 budget. For fiscal year 2012, Congress appropriated $1.28 billion less than requested in the Presidents budget.

What GAO Recommends

GAO has made recommendations to DHS and FEMA in prior reports to strengthen their management of preparedness grants and enhance their assessment of national preparedness capabilities. DHS and FEMA concurred and have actions underway to address them.