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Homeland Security: DHS Risk-Based Grant Methodology Is Reasonable, But Current Version's Measure of Vulnerability is Limited

GAO-08-852 Published: Jun 27, 2008. Publicly Released: Jun 27, 2008.
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Highlights

Since 2002, the Department of Homeland Security (DHS) has distributed almost $20 billion in funding to enhance the nation's capabilities to respond to acts of terrorism or other catastrophic events. In fiscal year 2007, DHS provided approximately $1.7 billion to states and urban areas through its Homeland Security Grant Program (HSGP) to prevent, protect against, respond to, and recover from acts of terrorism or other catastrophic events. As part of the Omnibus Appropriations Act of 2007, GAO was mandated to review the methodology used by DHS to allocate HSGP grants. This report addresses (1) the changes DHS has made to its risk-based methodology used to allocate grant funding from fiscal year 2007 to fiscal year 2008 and (2) whether the fiscal year 2008 methodology is reasonable. To answer these questions, GAO analyzed DHS documents related to its methodology and grant guidance, interviewed DHS officials about the grant process used in fiscal year 2007 and changes made to the process for fiscal year 2008, and used GAO's risk management framework based on best practices.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Homeland Security To strengthen DHS's methodology for determining risk, the Secretary of DHS should instruct the Federal Emergency Management Agency (FEMA), Office of Intelligence and Analysis (I&A), and National Protection and Programs Directorate (NPPD) - DHS components each responsible for aspects of the risk-based methodology used to allocate funds under the Homeland Security Grant Program - to formulate a method to measure vulnerability in a way that captures variations across states and urban areas, and apply this vulnerability measure in future iterations of this risk-based grant allocation model.
Closed – Implemented
Federal Emergency Management Agency (FEMA) officials reported in August 2011 that the agency, in coordination with other DHS components, modified the measurement of vulnerability for the fiscal year 2011 risk-based grant allocation model to better capture the risk to states and urban areas. For example, the current risk model considers infrastructure and international borders when calculating the vulnerability of states and urban areas. This change was reflected in FEMA's May 2011 Homeland Security Grant Program Guidance and Application Kit that notes that in fiscal year 2011, the risk formula used in the allocation model calculates the contribution of vulnerability and consequence separately as compared to prior years. As a result, DHS now uses a methodology that measure variations in vulnerability across states and urban areas and, therefore, better incorporates risk into the allocation of homeland security grant funding.

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Topics

Agency missionsAllocation (Government accounting)Critical infrastructureData collectionDefense capabilitiesEmergency preparednessEmergency response fundsEmergency response plansEvaluation criteriaFederal aid programsFederal aid to localitiesFederal fundsFederal grantsFinancial managementFiscal policiesFunds managementGrants to statesHomeland securityProgram evaluationProgram managementRisk assessmentRisk managementStrategic planningSurveysTerrorismDisaster grants fundingCost awarenessCost estimatesProgram costs