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<classification authority="sudocs">GA 1.13:T-RCED-99-274</classification>
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 <subject>Relief agencies</subject>
 <subject>Emergency preparedness</subject>
 <subject>Disaster relief aid</subject>
 <subject>Grants to states</subject>
 <subject>Federal/state relations</subject>
 <subject>Cost effectiveness analysis</subject>
 <subject>Federal aid to states</subject>
 <subject>Flood control</subject>
 <identifier>FEMA Hazard Mitigation Grant Program</identifier>
 <identifier>FEMA National Flood Insurance Program</identifier>
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 <title>Disaster Assistance: FEMA Can Improve Its</title>
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<abstract>Pursuant to a congressional request, GAO discussed how the Federal
Emergency Management Agency (FEMA), in conjunction with the states,
ensures the cost-effectiveness of projects funded under the Hazard
Mitigation Grant Program.&lt;p/&gt;GAO noted that: (1) the states and FEMA work together, using different
approaches, to help ensure that hazard mitigation grants are awarded for
cost-effective projects; (2) the states in GAO&apos;s review established
procedures and priorities for identifying and selecting mitigation
projects; (3) however, not all of them conducted formal analyses of
their projects&apos; cost effectiveness before submitting applications for
their projects to FEMA; (4) FEMA uses benefit-cost analysis as its
primary approach for ensuring that mitigation projects submitted by the
states are cost-effective; (5) however, FEMA also exempts certain types
of hazard mitigation projects from benefit-cost analysis, including
projects that fund the removal of certain structures from floodways and
floodplains and mitigation planning efforts; (6) FEMA officials stress a
need for flexibility in assessing these projects, suggesting that
benefit-cost analysis does not always apply to all mitigation projects,
because of difficulties in quantifying the benefits of some projects and
the time needed to gather data for conducting the analyses; (7) GAO&apos;s
review of +$20.1 million in funding for hazard mitigation projects in
four states found that projects receiving the majority of this funding
were considered cost-effective on the basis of the benefit-cost analyses
conducted; (8) however, the best available information--such as flood
damage information available from past insurance claims and updated
information on flood hazards--was not always used in conducting the
analyses; (9) GAO&apos;s review also found that projects receiving over
one-third of the funding were exempt from benefit-cost analysis, even
though no established analytical basis supported the exemption of the
majority of these projects; (10) FEMA officials explained that some
projects were difficult to evaluate against traditional quantitative
benefit-cost criteria and the exemptions were meant to speed the
delivery of grants to the states; and (11) establishing the basis for
exempting these acquisition projects and reviewing the
cost-effectiveness of other exempt projects after they have been
implemented would help FEMA better ensure that these mitigation projects
are cost-effective.</abstract>
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<note>Testimony</note>
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<subject>
 <topic>Relief agencies</topic>
 <topic>Emergency preparedness</topic>
 <topic>Disaster relief aid</topic>
 <topic>Grants to states</topic>
 <topic>Federal/state relations</topic>
 <topic>Cost effectiveness analysis</topic>
 <topic>Federal aid to states</topic>
 <topic>Flood control</topic>
 <topic>FEMA Hazard Mitigation Grant Program</topic>
 <topic>FEMA National Flood Insurance Program</topic>
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