Pursuant to a legislative requirement, GAO reviewed 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, focusing on: (1) the approaches FEMA and the states use to ensure that program grants are targeted to cost-effective mitigation projects; and (2) whether the approaches ensure that the mitigation measures are cost-effective.
Recommendations for Executive Action
|Directorate of Emergency Preparedness and Response||To ensure that only cost-effective projects are funded through the Hazard Mitigation Grant program, the Director, FEMA, should establish an analytical basis supporting the cost-effectiveness of acquiring substantially damaged properties in floodplains.|
|Directorate of Emergency Preparedness and Response||To better ensure the cost-effectiveness of other types of projects exempted from benefit-cost analysis, the Director, FEMA, should conduct periodic reviews of the FEMA projects after they have been implemented to determine whether they were cost-effective.|
|Federal Emergency Management Agency||To provide the best available data for analyzing the cost-effectiveness of proposed flood hazard mitigation projects, the Director, FEMA, should conduct postdisaster verifications of flood hazards for use in evaluating and possibly revising flood hazard map information.|
|Federal Emergency Management Agency||To provide the best available data for analyzing the cost-effectiveness of proposed flood hazard mitigation projects, the Director, FEMA, should make the agency's information on past insurance claims more readily available for FEMA staff conducting benefit-cost analyses.|