Department of Homeland Security.

This is one of a series of audit, inspection, and special reports prepared as part of our oversight responsibilities to promote economy, efficiency, and effectiveness within the department. This report addresses FEMA's preparedness for the next catastrophic disaster. It is based on interviews with employees and officials of relevant agencies and institutions, direct observations, and a review of applicable documents. It is our hope that this report will result in more effective, efficient, and economical operations. We express our appreciation to all of those who contributed to the preparation of this report. the House Committee on Oversight and Government Reform held a hearing to review the Federal Emergency Management Agency's (FEMA) preparedness to handle a future disaster. During that hearing, the Deputy Inspector General for Emergency Management Oversight testified that the " New FEMA " had made progress in many areas related to disaster preparedness, but that generally FEMA was not fully prepared for a catastrophic disaster. The Committee, in turn, requested that the Office of Inspector General (OIG) provide a high-level assessment of the Department of Homeland Security (DHS)/FEMA's preparedness for the next catastrophic disaster. The primary objectives of our assessment were to identify key areas for preparing for a catastrophic disaster, and determine the progress FEMA has made in the key areas since Hurricane Katrina struck in August 2005. We reviewed pertinent reports, including those of our office and the Government Accountability Office (GAO), as well as congressional testimony. We identified nine key areas critical to successful catastrophic preparedness efforts. We collaborated with FEMA officials to identify two to five critical components within each key area. We interviewed FEMA officials and evaluated documents provided by them. We assessed FEMA's progress in each of the areas using a four-tiered scale: substantial progress, moderate progress, modest progress, and limited or no progress. Given the scope and limitations of our review, we did not perform an in-depth assessment of each of the nine key preparedness areas. We used the critical components within each area, as well as our broader knowledge of the key preparedness areas, to gauge FEMA's overall progress in those areas. Overall, FEMA has made moderate progress in five of the nine key areas, modest progress in three areas, and limited progress in one FEMA's Preparedness for the Next Catastrophic Disaster Page 1 area (See Figure 1). FEMA officials said that budget shortfalls, reorganizations, inadequate information technology systems, and …