EDITOR ’ S NOTE Welcome to Disaster Recovery Today®, offered as a public service by Tidal Basin. In this publication we share the knowledge gained from years of field experience that has made Tidal Basin’s team the leading experts in preparedness and disaster recovery consulting. This issue is the first in a series addressing nine key steps or guidelines for proactively and effectively managing federal disaster grants. It focuses on step one — the cornerstone of disaster planning — developing a management approach to a successful recovery. Subsequent issues will detail the eight other crucial steps following a disaster, as outlined on page 7. We welcome your feedback on our articles and suggestions for topics you would like to see covered in future editions. — Sheila E. Salvatore, Editor Would you know exactly what to do if a tornado, hurricane or flood struck tomorrow, and would your organization ultimately survive if one did? In addition to the loss of infrastructure and equipment, you may also deal with out-of-work staff, strained resources and an attack on financial reserves — all of which can destroy the future of your organization. Even if your organization avoids direct damage from a disaster, operations may be interrupted as a result of damages to power supplies, road systems, water resources and civil enforcement measures such as limited access and curfews. Managing a Disaster Lack of Teamwork Could Be the Real Disaster Disaster Recovery Consulting
2 D I SAS T E R R ECOVE RY TODAY.COM “The development of a dedicated ‘disaster team’ is the first step in the planning process and the foundation of a successful recovery.” _______________ * If an organization does not have personnel on staff to fill these positions, it may be necessary to use outside consultants and/or professionals. A common denominator with organizations that have difficulty with their recovery is the absence of progressive mitigation strategies, a detailed recovery plan and a team to implement both. Something as simple as the purchase of generators prior to an event could be the difference between recovery and demise, as the likelihood of obtaining one after a largescale disaster is slim. Before an organization can develop the necessary strategies, it must first determine who will be involved in the process. When making this decision, it is important to realize that the people who develop these procedures may ultimately take a hands-on role in their implementation. The development of a dedicated“disaster team” is the first step in the planning process and the foundation of a successful recovery. At a minimum the team should include the following:* Recovery Manager The recovery manager fulfills an important administrative role. Ultimately this person will make the final decision regarding strategies, priorities and settlements. The role of recovery manager can be a titular one, or rather an active one. For the manager who chooses to take an active, informed role in the planning and recovery processes, possession of the following attributes is necessary:
T IDALBAS INGROUP.COM 3 Knowledge of federal and state relief programs Knowledge of applicable codes, policies and regulations Knowledge of the organization’s overall financial situation before an event and during the recovery Knowledge of organizational policies for payroll, codes and standards, and procurement Authority to implement plans and direct the overall recovery efforts Good negotiation and communications skills Good programmanagement skills The responsibilities of the recovery manager are to: Act as the formal point of contact with assisting agencies Ensure that other teammembers are given the authority and resources necessary to complete their responsibilities Enforce internal coordination procedures Take the lead in policy-level discussions Chair internal disaster planning and recovery meetings Resolve internal disputes Manage the overall planning and recovery processes Recovery Coordinator The recovery coordinator will be involved in the day-to-day, hands-on management and coordination activities. This person is necessary even in a case where the recovery manager takes a hands-on role. Ideally, this person will be provided with an administrative assistant and will assume the following responsibilities: Knowledge of federal and state relief programs Working knowledge of FEMA’s “Grants Portal” and related Recipient reporting program(s) Coordinate and compile damage assessment information — defined by FEMA as a “damage inventory” Stay informed of decisions and agreements reached with insurers and other assisting agencies Schedule meetings and inspections Ensure senior management stays informed of the recovery process Test organizational concurrence with documentation procedures and mitigation strategies Circulate notes to team members promptly after meetings Circulate new or clarifying information to team members Work with risk management to insure sites as appropriate Department Representatives In addition to the recovery manager and coordinator, representatives from the following departments or sub-units should be assigned to the recovery team. These representatives should direct activities internal to their department and will be responsible for overseeing the recovery efforts undertaken within their department. The responsibilities according to their respective departments are summarized below: Central Finance/Accounting – Develop and maintain recovery database – Develop fund accounting approach; communicate to other teammembers – Determine the need for advances
4 D I SAS T E R R ECOVE RY TODAY.COM – Enforce financial management procedures Legal – Advise in matters concerning: • Employee relations • Insurance coverage • Policy revisions • Contentious issues Purchasing/Procurement – Develop list of preferred contractors and vendors – When possible, develop renewable task-order contracts prior to a disaster to ensure your organization has the necessary outside resources immediately available – Monitor contractor performance Risk Management – Acquire necessary insurance – Coordinate with teammembers concerning insured losses – Present settlement offers to team for discussion – Forward all settlement information to finance/accounting Technical Leads – Information Technology – Engineering – Design – Project Managers • Interact with recovery coordinator • Interact with finance/accounting to making tracking approach workable • Inform project managers of local, state and federal codes that may affect the repair process • Develop cost estimates and scopes of work • Document activities when performing the repair (clear, descriptive date-stamped photos; narrative regarding the specific repair, labor, material and equipment records) • Write descriptions of damages and justify repair solutions • Justify that the existing damage is directly attributed to the disaster • Manage contractors and consultants • Provide project status reports as requested • The technical team should also be familiar with and able to utilize FEMA’s Grants Manager and Grants Portal tools (see FEMA News on page 8) Understanding the Risk After a team is developed, the next step is to understand what is “at risk,” and to determine methods to minimize that risk. 1. The first step in this four-part process is to determine what your risk exposure is. What would threaten the survivability of your organization if a disaster occurred? You should attempt to quantify a loss before it happens by determining insurable values on your assets including buildings, inventory, stock and income. Once a value is determined it must then be measured against other factors such as seasonal influence, and the type and projected frequency of an event. 2. Next is the development of loss control measures and mitigation strategies to reduce the frequency and severity of losses. This can range from preventative maintenance on essential equipment to off-site backup of vital information.
T IDALBAS INGROUP.COM 5 3. Once exposures are determined, organizations need to develop methods to transfer the risk (financial burden) so they can continue to operate, and minimize the financial strain. 4. An organization must continually monitor their risk and update control measures and risk transfer methods accordingly. It is important to keep in mind that the assessment of risk is largely based on the assumptions of the parties involved. It is imperative that the planning team be supplemented with members involved in the development of the organization as they have a unique, and often times very succinct, view of what is at risk. Once it is determined what could happen and methods are determined to meet the challenge when it occurs, the next step is to ensure that the recovery team is prepared to spring into action. Initially, the first obstacle to success may be communication. During the first few days following a disaster, the situation is chaotic at best, and while it may appear that there is no time for the team to meet, nothing could be further from the truth. The decisions made during the first few days following the event will shape the eventual outcome. Do we repair or replace? Do we send our computers out for data retrieval or purchase new? The recovery team, ensuring that all angles have been explored, should make these and many other decisions. The disaster team needs to communicate routinely to ensure that the recovery process is coordinated and that all team “During the first few days following a disaster, the situation is chaotic at best, and while it may appear that there is no time for the team to meet, nothing could be further from the truth. The decisions made during the first few days following the event will shape the eventual outcome.”
6 D I SAS T E R R ECOVE RY TODAY.COM members are apprised, in a timely way, of information that could affect their portion. The contact point for team coordination is the recovery coordinator. He or she is responsible for circulating information to the appropriate teammembers and for calling meetings and setting agendas. During the first fewmonths of the recovery process, it will be necessary for the team to meet at least every two weeks, with frequency falling to once a month after that. A sample agenda for a typical recovery team status meeting is: Policy decisions and important information discussed at the meetings should always be documented and meeting minutes circulated as soon as possible after these meetings. Once an organization becomes familiar with the dynamics of their internal disaster team and feels comfortable with its overall capability, consideration should be given to the inclusion of outside members such as consultants, strategic partners and preferred vendors. A disaster is the culmination of many different components, all necessary to achieve the end result. A successful recovery hinges on the same premise, and needs each member of the disaster team, equally, to become a reality. AGENDA I. Introduce new attendees (Coordinator) II. Review day’s agenda (Coordinator) III. Review new determinations (made by insurer, or other agencies providing assistance), policies, memorandums, etc. (Coordinator) IV. Present status reports: Actions from last meeting (All) V. Capture new issues (All) VI. Discuss ongoing issues and new issues captured under IV above (All) VII. Additional topics added during discussion (All) VIII. Review action items (All) IX. Adjourn
T IDALBAS INGROUP.COM 7 DISASTER PLANNING 9 Step 1: DEVELOP A MANAGEMENT APPROACH The first step after a declared disaster is to develop a management approach. An “ad-hoc” recovery team needs to be created, roles and responsibilities delineated, and a well-organized filing approach must be established to handle the many projects. Step 2: DETERMINE YOUR LOSSES Determine your losses beginning with your cleanup and emergency response. Then, building, equipment and supplies losses must be quantified “as it was” and “as it has to be.” Lost revenues and temporary relocation costs need to be calculated as well. Step 3: CATEGORIZE THE LOSSES FEMA categories A-G, insured/uninsured, responsibility of OFA, and special considerations. Step 4: DETERMINE ELIGIBILITY General eligibility requirements include the following: it needs to be required as the result of the event; it must be caused by the event (no pre-existing damage); it must be located within the designated disaster area; and it must be the legal responsibility of an eligible applicant. Step 5: DEVELOP A REBUILDING PLAN The applicant needs to consider the recovery “as they want it to be” considering whether to replace or relocate certain buildings, fixtures or infrastructure. The mitigation approach is outlined in Section 406 and Section 404 of The Stafford Act. Categorization of anticipated insurance proceeds also needs to be well documented. Step 6: DEVELOP A FUNDING APPROACH These can be broken down into the following: Standard Project, Alternate Project, Improved Project or in special circumstances the Grant Acceleration Program. Step 7: IMPLEMENT THE PLAN Implementation involves the development of applicable project worksheets and proposals and the completion of approved projects. Step 8: FINAL INSPECTION AND CLOSE OUT This includes the state audit of all large projects, dispute resolution, re-evaluation of applicable insurance reductions and the acquisition and maintenance of adequate insurance if reasonable and practical. Step 9: THE AUDIT PROCESS FEMA’s Office of the Inspector General often selects Subgrantees for program and financial audits. This can occur any time throughout the process; up to three years from the completion of all projects. Following a declared disaster, organizations need to implement a well thought out recovery approach. Tidal Basin has identified nine key steps to a successful recovery under FEMA’s Public Assistance Program. The Steps
CORPORATE OFFICE 126 Business Park Drive Utica, New York 13502 888.282.1626 Outside U.S. (703) 683.8551 [email protected] Copyright 2022 Tidal Basin. All Rights Reserved. Follow Disaster Recovery Today on Facebook & Twitter: Facebook.com/TidalBasinGroup Twitter.com/DRToday DISASTER RECOVERY TODAY® is published as a public service by Tidal Basin. It is provided for general information and is not intended to replace professional insurance, legal or financial advice for specific cases. WEB ADDRESSES TidalBasinGroup.com DisasterRecoveryToday.com PUBLISHER Daniel A. Craig, MBA EDITOR Sheila E. Salvatore Is there a topic you would like to see covered in an upcoming edition of Disaster Recovery Today? You can make topic suggestions, contact the editor, request free subscriptions and browse our back issues all from our website — DisasterRecoveryToday.com. We look forward to hearing from you. DRT04 4000-R3 FEMA Enhances Transparency with PA Grants Manager and Grants Portal “A critical component of the Public Assistance (PA) Program National Delivery Model is standardizing project workflows with improved technology. Since 2016, FEMA has focused on developing a new information technology system to document PA projects in formulation with a seamless transition to grant obligation. The result is a two-part platform— the PA Grants Manager and Grants Portal tool — that promotes transparency and accountability for all stakeholders involved in the PA grant process. The Grants Manager is used internally by FEMA specialists to formulate projects and conduct all other pre-award functions. The Grants Portal is the forward-facing platform used by state, local, tribal, and territorial (SLTT) governments and eligible non-profit organizations to manage grant applications. The Grants Manager and Grants Portal are built using agile project management principles and evolve through monthly development cycles known as sprints. This method promotes planning, evolutionary development, continuous improvement, and encourages rapid and flexible responses to changes identified by subject matter experts. Users identify issues and submit recommended changes through the Change Control Tool to improve functionality in the PA Grants Manager and Grants Portal. Overall, the Grants Manager and Grants Portal establish baseline data to measure performance and make informed adjustments to increase simplicity, accuracy, efficiency, accessibility, and timeliness in the PA Program.” (Source FEMA.gov) News
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