GAO-04-727R FEMA’s Mitigation Program 

United States General Accounting Office

Washington, DC 20548 

April 28, 2004 

The Honorable Daniel K. Akaka 

Ranking Minority Member 

Subcommittee on Financial Management, the Budget 

 and International Security 

Senate Committee on Governmental Affairs 

United States Senate 

Subject: Status of FEMA’s FY03 Pre-Disaster Mitigation Program

Dear Senator Akaka: 

The Federal Emergency Management Agency (FEMA) provides federal disaster 

assistance to help those in need respond to, prepare for, and recover from disasters. 

As the costs for disaster assistance have risen, FEMA has made disaster mitigation a 

primary goal in its efforts to reduce the long-term cost of disasters and minimize risk 

to property and individuals from natural or man-made hazards. Previous FEMA 

mitigation grant programs were formula-based and provided funds both prior to and 

after a disaster occurred. Fiscal Year 2003, marks the first-time FEMA has 

implemented a grant program that awards funds for mitigation activities on a 

competitive basis. 

You asked us to review the status of FEMA’s implementation of the Fiscal Year 2003 

Pre-Disaster Mitigation Program. This report presents information on (1) FEMA’s 

processes and criteria for awarding planning and competitive pre-disaster mitigation 

grants to states and localities, and (2) the status of FEMA’s efforts to implement the 

Fiscal Year 2003 Pre-Disaster Mitigation Program. 

We reviewed fiscal year 2003 guidance, interviewed FEMA headquarters officials, and 

analyzed data regarding planning and project applications. To assess the reliability of 

the pre-disaster mitigation application and grant data presented in the briefing, we 

interviewed agency officials knowledgeable about the data and the system that 

produced them and reviewed existing information about the application process. We 

determined that the data were sufficiently reliable for the purposes of this briefing. 

We conducted our review from November 2003 through February 2004 in accordance 

with generally accepted government auditing standards. 

We provided your staff with a formal briefing on March 12, 2004. This report includes 

the briefing slides used at the presentation and summarizes our findings and FEMA’s 

lessons learned from the implementation of the Fiscal Year 2003 Pre-Disaster 

Mitigation Program to improve the program in the future. 
Page 2 GAO-04-727R FEMA’s Mitigation Program 

In summary, we found the following with regard to processes and criteria for 

awarding planning and competitive grant awards: 

• In 2003, Congress appropriated $150 million to initiate the implementation of a 

competitive pre-disaster mitigation grant program. This is the first-time FEMA 

has implemented a competitive mitigation grant program. 

• The Fiscal Year 2003 Pre-Disaster Mitigation Program included approximately 

$13.7 million for noncompetitive planning grants and approximately $131.5 

million for competitive pre-disaster grants for mitigation activities and 

technical assistance. Each of the 55 states and territories were eligible to 

receive approximately $250,000 in noncompetitive grants. FEMA awarded the 

competitive grants based on a ranking and evaluation process. 

• FEMA assessed the applications for the competitive mitigation grants for 

eligibility and technical feasibility. FEMA then ranked and evaluated the 

applications using both quantitative and qualitative factors for selection of 

competitive award grants. 

In summary, we found the following with regard to implementation of the Fiscal Year 

2003 Pre-Disaster Mitigation Program: 

• FEMA had obligated all of the $13.7 million in noncompetitive planning grants 

to 54 states and territories that applied. 

• FEMA received 459 competitive grant applications. Approximately 40 percent 

of the competitive grant applications submitted by the states, tribes, and 

territories did not meet eligibility and technical feasibility requirements. 

FEMA attributes this to the short application period. 

• FEMA identified 200 applications to award competitive grants. These 

applications have a value of $98.7 million and cover 37 states, 2 territories, and 

6 tribes. FEMA expected to begin awarding the competitive grants mid-March 

2004. 

• FEMA plans to use lessons learned from the implementation of the Fiscal Year 

2003 Pre-Disaster Mitigation Program to improve the program in the future. 

These lessons include (1) implementing a longer application period, 

(2) sequentially reviewing grant applications to reduce inefficient use of 

resources, and (3) making the e-Grant application form standard with paper 

applications to reduce processing time. 

We met with FEMA’s Risk Reduction Branch Chief for Mitigation and other FEMA 

officials in the Mitigation Division to discuss the facts of this report. They generally 

agreed with the information in the briefing and provided some clarifying comments 

that we incorporated as appropriate. 
Page 3 GAO-04-727R FEMA’s Mitigation Program 

As agrred with your office, unless you publicly announce its contents earlier, we plan 

no further distribution of this report until 30 days from the date of this report. At that 

time, we will send copies of this report to the congressional committees and 

subcommittees responsible for issues related to FEMA and the Department of 

Homeland Security. In addition, this report will be available at no charge on GAO’s 

Web site at http://www.gao.gov. 

If you have any questions about this briefing or need additional information, please 

contact me at (202) 512- 8757. Key contributors to this briefing were Chris Keisling, 

Kirk Kiester, and Mark Abraham. 

Sincerely yours, 

William O. Jenkins 

Director, Homeland Security and Justice 

Enclosure 
Page 4 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

1

Status of FEMA’s FY 03 Pre-Disaster Mitigation Program

Briefing to the Staff of the Committee on Governmental Affairs 

Subcommittee on Financial Management, the Budget and International 

Security, U.S. Senate

March 12, 2004
Page 5 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

2

Objectives,Scope, and Methodology

Objectives

• What are the Federal Emergency Management Agency’s (FEMA) processes and 

criteria for awarding planning and competitive pre-disaster mitigation grants to states 

and localities?

• What is the status of FEMA's efforts to implement the Fiscal Year 2003 Pre-Disaster 

Mitigation (PDM) program?

Scope and Methodology

• To determine the processes and criteria for awarding planning and competitive predisaster mitigation grants to states and localities, we reviewed fiscal year 2003 

guidance and discussed the guidance with FEMA headquarters officials. 

• To determine the status of FEMA’s efforts to implement the fiscal year 2003 program, 

we reviewed and analyzed data regarding planning and project applications and 

awards and interviewed FEMA headquarters officials regarding the status of program 

implementation. 

We conducted our review from November 2003 through February 2004 in accordance 

with generally accepted government auditing standards.
Page 6 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

3

Background

PDM Program Purpose

• The Disaster Mitigation Act of 2000 authorized a noncompetitive PDM program.

• In FY 2003, Congress appropriated $150 million and further defined the program to 

explicitly require competitive grant awards.

• The PDM program provides funding to states, tribal governments, and local communities 

before disasters occur through mitigation planning and competitive pre-disaster mitigation 

planning and project grants designed to reduce risk to life and property.
Page 7 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

4

Background (cont’d)

Eligible noncompetitive pre-disaster mitigation planning grant activities include

• Development of state and local multi-hazard mitigation plans

• Marketing and outreach activities to better educate the public on mitigating 

disaster risk 

Eligible competitive pre-disaster mitigation grant activities include

• Property acquisition projects

• Structural and non-structural retrofitting projects (e.g., structural elevations, 

storm shutters, and roof straps)

• Localized hazard control projects (e.g., culverts, retention basins, ring levees, 

and flood walls)

• Mitigation planning
Page 8 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

5

Background (cont’d)

PDM Program Funding 

• $150 million FY 03 Appropriations included:

• $250 thousand for state (or territory) applying for noncompetitive mitigation planning 

grants and;

• $131.5 million for competitive pre-disaster grants for mitigation activities and 

technical assistance. 

Eligibility Requirements for Planning and Competitive Mitigation Grants 

• Cost share requirement: up to 75 percent federal (up to 90 percent federal for small, 

impoverished communities1)

• National Flood Insurance Program participation for communities that have been identified as 

having a Special Flood Hazard Area

1Small, impoverished communities would include, for example, a community with residents having an average per capita annual income not 

exceeding 80 percent of national per capita income.
Page 9 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

6

Competitive Grant Application Process

Objective 1

Processes and Criteria for Awarding PDM Grants
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Enclosure 

7

Objective 1

Processes and Criteria for Awarding PDM Grants (cont’d)

Criteria Used for National Ranking Score (Competitive Mitigation Planning Activities)
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Enclosure 

8

Objective 1

Processes and Criteria for Awarding PDM Grants (cont’d)

Criteria Used for National Ranking Score (Competitive Mitigation Project Activities)
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Enclosure 

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Objective 1 

Processes and Criteria for Awarding PDM Grants (cont’d)

Description of National Ranking Score Criteria

• Risk Assessment (planning only): A process in which states and localities determine (1) which hazards could affect a 

jurisdiction, (2) what areas are vulnerable to the hazard; (3) what structures and infrastructures will be affected; and (4) to

what degree will they be affected.

• Small, impoverished community (planning and project): Would include, for example, a community with residents having an 

average per capita annual income not exceeding 80 percent of national per capita income.

• FEMA-approved mitigation plan (planning and project): As of November 1, 2003, FEMA-approved local mitigation plans 

were required to receive PDM grants for local projects. After November 1, 2004, a FEMA-approved state plan will be 

required to receive PDM grants for state and local projects.

• Community Mitigation Factors (planning and project): Participation in activities that reduce the community's vulnerability to 

hazards, such as the Community Rating System, Cooperating Technical Partner, Firewise Community and the adoption 

and enforcement of certain fire and building codes.

• State/Tribal Priority (planning and project): Prioritization given to application based on state/tribal defined criteria.

• Critical facilities (project only): Projects that protect facilities such as hazardous waste facilities, emergency operations 

center, medical care facilities and police and fire facilities.

• Benefit- Cost Analysis (project only): A quantitative procedure that assesses the desirability of a hazard mitigation project 

by taking a long-term view of avoided future damages compared to the cost of a project. FEMA requires that all project 

benefits must equal or exceed cost.

• Population Benefits (project only): The percent of the community’s population benefiting from the proposed mitigation 

project.
Page 13 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

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Objective 1 

Processes and Criteria for Awarding PDM Grants (cont’d)

Example of FEMA’s scoring process for mitigation planning activities: Risk Assessment criteria 
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Enclosure 

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Objective 1

Processes and Criteria for Awarding PDM Grants: Evaluation

Criteria Used for National Evaluation (Competitive Mitigation Planning Activities)
Page 15 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

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Objective 1

Processes and Criteria for Awarding PDM Grants: Evaluation 

(cont’d)

Criteria Used for National Evaluation (Competitive Mitigation Project Activities)
Page 16 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

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Objective 1 

Processes and Criteria for Awarding PDM Grants: Evaluation 

(cont’d)

Description of National Evaluation Score Criteria

• Feasibility (planning and project ): The ability of the desired mitigation objectives to be achieved.

• Implementation (planning and project ): The reasonableness of the activity timelines and expectations.

• Staff and resources (planning and project ): Sufficient staff and resources that are available to implement proposed 

mitigation activities and their ability to provide the resources.

• National Priority (planning and project ): Consistency with FEMA’s National priority to address NFIP repetitive flood 

loss properties.

• Community mitigation initiative (planning and project ): Initiatives such as tax credits, waiver of building permit fees, 

and building codes 

• State and local community involvement (planning and project ): State and localities ability to leverage additional 

resources through partnerships.

• Outreach (planning and project ): State and local efforts to market and inform the public on mitigating disaster risk.

• Model for other communities (planning and project ): Intention to mentor other communities, tribes, or states.

• Innovation and creativity (planning and project ): The use of innovative and creative methods to address mitigation 

needs.

• National Ranking Score: A score based on a quantitative set of criteria used to determine which application will 

proceed to the evaluation phase of the program.

• Financial and Social Benefits (project only): The degree of long-term financial and social benefits the mitigation 

activity offers.

• Critical facilities (project only): Projects that protect facilities such as hazardous waste facilities, emergency operations 

center, medical care facilities, and police and fire facilities.
Page 17 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

14

Objective 2

Status of FEMA’s Implementation of the FY03 PDM Program 

Timeline of Events for the Fiscal Year 2003 PDM program
Page 18 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

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Objective 2

Status of FEMA’s Implementation of the FY03 PDM Program 

(cont’d)

Number of Competitive Grants Applications Received by Region
Page 19 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

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Objective 2

Status of FEMA’s Implementation of the FY03 PDM Program 

(cont’d)

Competitive Grant Applications Received According to Primary Hazard

a Total does not equal 100 percent due to rounding.
Page 20 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

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Objective 2

Status of FEMA’s Implementation of the FY03 PDM Program 

(cont’d)

FEMA Awarded Noncompetitive Planning Grants to all of the 54 states and territories that 

applied; only one state- West Virginia-did not apply.

Localities in 52 out of the 55 States and Territories Have Submitted Competitive Grants 

Applications. 

FEMA

• received 459 competitive planning and project grant applications, 

• selected 271 competitive planning and project grant applications for evaluation, and

• identified 200 competitive planning and project grant applications to receive funding.
Page 21 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

18

Objective 2

Status of FEMA’s Implementation of the FY03 PDM Program 

(cont’d)

Note: FEMA continues to review applications, which may result in funding for a third phase.

Total does not equal 100 percent due to rounding.
Page 22 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

19

Lessons Learned

FEMA plans to utilize lessons learned from the implementation of the FY2003 PDM 

program to improve the program in the future. Approximately 40% of the competitive grant 

applications submitted by the states, tribes, and territories did not meet eligibility and 

technical feasibility requirements. FEMA attributes this primarily to the short application 

period for these grants. The following factors contributed to the short application period:

• FY 03 Appropriations were not finalized until February 2003.

• FEMA required more time for first year implementation to develop the program and 

coordinate with the Office of Management and Budget & the Department of Homeland 

Security to obtain their approval.

According to FEMA, the 90-day application period was not long enough for

• States and localities to understand the requirements of a new competitive program;

• Localities to prepare and submit applications;

• States and localities to make use of the new e-Grants system;

• States to review and prioritize applications; and

• States and localities to secure cost share commitments. 

FEMA plans to implement a longer application period (optimally 150 – 180 days ).
Page 23 GAO-04-727R FEMA’s Mitigation Program 

Enclosure 

(440225) 

20

Lessons Learned (cont’d)

Additional lessons FEMA learned from the implementation of the FY 2003 PDM program to 

improve the program in the future include

• Concurrent eligibility and technical review was inefficient because resources were used 

to determine if projects were technically qualified then some qualified projects were 

subsequently determined to be ineligible for funding. FEMA plans to sequentially 

review grant applications starting with eligibility and completeness review followed by 

the technical review.

• Nonstandardized paper applications made the review process more time-consuming. 

FEMA plans to make the paper application form consistent with the e-Grant form for 

those states that choose to submit paper applications.
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