GAO Report Criticizes FEMA’s Management Of NFIP

The GAO report says that the pressure on the NFIP to provide services for everyone limits FEMA's ability to keep the program financially sound.

Under present circumstances, the report says, "NFIP's long-term financial solvency will remain in doubt."

The report points out weaknesses in the NFIP's insurance policy and claims management system, noting that FEMA cancelled a modernization initiative called "NextGen" in November 2009 because the system failed to meet "user expectations."

This was after seven years of effort and the expenditure of $40 million, GAO says.

FEMA faces significant management challenges in areas that affect the NFIP, including strategic and human capital planning; collaboration among offices; and records, financial, and acquisition management, the GAO report says.

For example, it states that FEMA has not developed goals, objectives, or performance measures for the NFIP, and that the program faces high turnover and weaknesses in the oversight of its many contractors.

Furthermore, "FEMA needs a plan that would ensure consistent day-to-day operations when it deploys staff to federal disasters," the GAO report says.

GAO officials also say that FEMA has faces challenges regarding collaboration between program and support offices.

"Finally, FEMA lacks a comprehensive set of processes and systems to guide its operations, in particular a records-management policy and an electronic document management system," the report says.

The GAO notes that FEMA has begun to address some of these challenges, including acquisition management, "but the results of its efforts remain to be seen. Unless it takes further steps to address these management challenges, FEMA will be limited in its ability to manage NFIP's operations or better ensure program effectiveness."