Integrated Report

Federal Emergency Management Agency

Mandel Ngan/AFP/Getty Images

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Table of Contents

Purpose 2

Corporate and Governance 2

Assurance Provider and Standards 3

Who is FEMA? 3

Value Creation Process 4

RESOURCES 6

Stakeholders & Accountability 10

Risks and Externalities 12

Recommendations 13

Conclusion 14

References 14
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Purpose
The purpose of this integrated report on the Federal Emergency Management Agency

(FEMA) 2020 is to explore the many resources FEMA utilizes, by looking at capitals, purpose,

value creation process, stakeholders, and accountability. This integrated report will contain

suggestions on ways FEMA can improve accountability to stakeholders and spread its value

creation story to a wider audience.

Corporate and Governance

Corporate Status
The Federal Emergency Management Agency is a U.S. federal government agency

underneath the umbrella of the Department of Homeland Security. FEMA serves the people of

the United States of America and its territories and operates 24/7 365 days of the year.

Governance

The governing bodies of FEMA according to the 2020 annual report and October 22,

2021, updated chain of command document are the heads of the various offices and tasks forces

within the agency. The top of the chain of command contains the Office of Profession

Responsibility,

director -

Lauren Kauler

and deputy

director Jessica

Samuel, the

Office of the

Administrator,

chief of staff,

Michael Coen

JR. and deputy

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chief of staff, Avital “Tali” Cohen, Resilience deputy administrator, vacant and Associate

administratorVictoria Salinas, and the administrator of FEMA Deannie Criswell. All other

offices and departments are under the chain of command and can be seen above in figure 1.1.

These offices are responsible for delegating committees and are members of other

sub-committees and make up the governing body of FEMA.

Assurance Provider and Standards

FEMA’s internal 2020 annual report follows the Appendix A of OMB Circular A-123 and

Government Accountability Office (GAO) Standards for Internal Control of the Federal

Government. As per federal law, FEMA must also have an independent audit performed by the

Office of the Inspector General who is contracted with the accounting firm KMPG LLC in

accordance with the U.S. generally accepted government auditing standards, Office of

Management and Budget audit guidance, and the GAO/CIGIE Financial Audit Manual (The

Department of Homeland Security (DHS) Agency Financial Report for FY 2020). The Secretary

and Chief Financial Officer of DHS provide oversight and opinions on the annual report for the

fiscal year 2020.

Who is FEMA?
Mission Statement - “Helping people before, during, and after disasters.” (fema.gov).

Officially established on April 1, 1979, by President Jimmy Carter, FEMA has helped the

United States with emergency management and civil defense for 42 years, with the former

Executive Order 12148 signed on July 20, 1979 (fema.gov). FEMA has grown substantially and

strengthened its mission and values in the 42 years since its inception. The creation of the

Stafford Act (1988), Department of Homeland Security (2002), Post-Katrina Emergency

Management Reform Act (2006), Sandy Recovery Reform Act (2013), and the Disaster

Recovery Act (2018) have strengthened and clearly defined FEMA. Over 20,000 people are

routinely employed by FEMA, during times of major disasters workforces numbers can exceed
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50,000, with 10 regional offices and headquarters in D.C. FEMA covers the entire United States

of America (fema.gov).

The values of FEMA are the driving forces that create success and achievement of the

organization’s mission statement. “FEMA has eight mission programs supporting a national joint

effort between citizens and first responders to build, sustain, and improve capabilities to prepare

for, protect against, respond to, recover from, and mitigate all hazards: Disaster Relief Fund;

Education, Training, and Exercises; Grants; Mitigation; National Flood Insurance Fund;

Preparedness and Protection; Regional Operations; and Response and Recovery” (fema.gov).

These missions are achieved by actions taken using the four core values of FEMA. The four core

values of FEMA are: “Compassion, Fairness, Integrity, and Respect”. These values are applied to

every action and interaction by employees (Publication 1). The Pub 1, or Publication 1, is the

capstone doctrine of the agency with, “the intent to promote innovation, flexibility, and

performance in achieving our mission” (Publication 1). Pub 1 is the foundation of FEMA’s value

creation process and all employees are included within the value creation process because of

their work to live the mission and values of the agency.

Value Creation Process

Intangible and Tangible Transformations

FEMA provides tangible assets to customers in the form of shelter, food, and basic

necessities. These tangible assets help customers to get back on their feet and apply for grants

and loans which are intangible assets that are provided by FEMA. These intangible financial

assets are particularly interesting and important because they are typically transformed into

tangible resources like permanent shelter and new possessions to replace those that were lost.

Other intangible assets provided by FEMA are education, emotional support provided by disaster

relief workers, and support to those affected by a disaster in the United States. A large emphasis

is placed on preparedness and the knowledge of being prepared which means having access to

tangible items like water, food, and the ability to communicate with others. In fact, “while 60
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percent of Americans say preparation for natural or man-made disasters is very important to

them, only a staggering 17 percent of Americans claim to be very prepared for an emergency

situation, according to a new survey commissioned by the Ad Council”

(https://www.ready.gov/testimonials). FEMA is creating value and working to raise the

percentage of Americans prepared with both intangible and tangible resources for emergency

situations. The business model canvas provided above expands on the value creation process and

its parts.
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RESOURCES

Financial Capital

The financial capital of FEMA is encompassed by the Department of Homeland Security

and does not stand alone. The net cost of the Federal Emergency Management Agency in the

fiscal year 2020 is, “(in millions) Gross Cost - 66,661, Less Earned Revenue - (5,958), Net Cost -

60,703,” triple the net cost of 2019.” (DHS.gov). The net cost of the agency is extracted from the

DHS financial report and is made available to the public. The current state of the 2021 budget for

DHS, including FEMA, shows how:

“Agencies spend their available budgetary resources by making binding financial

commitments called obligations. An agency incurs an obligation, for example, when it

places an order, signs a contract, awards a grant, purchases a service, or takes other

actions that require it to make a payment. As of September 30, 2021, the Department of

Homeland Security has obligated $142.0 Billion against its $197.9 Billion in budgetary

resources and outlayed $121.0 Billion in FY 2021”

(https://www.usaspending.gov/agency/766).

This year’s financial capital is built from the foundation of the years before. For the fiscal year

2020, “The Department’s budgetary resources were $196.6 billion” and “of the total budget

authority available, the Department incurred a total of $160.5 billion in obligations from salaries

and benefits, purchase orders placed, and contracts” (www.dhs.gov). Leaving the agency with a

positive balance of $36 billion to carry over into 2021.

Manufactured Capital
Within the Department of Homeland Security’s FY 2020 financial report, the entirety of

all government agencies in DHS’s real property costs and holdings are listed. 72% of the assets

of DHS are “Property, Plant, and Equipment (PP&E) these include buildings and facilities,

vessels, aircraft, construction in progress, and other equipment.” (www.dhs.gov). Unlike

financial reports made by other organizations, the DHS sees PP&E as assets instead of expenses
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because they look at the long-term assistance in accomplishing the missions of each agency

(www.dhs.gov). This distinction is important because with PP&E located all over the U.S.

FEMA and DHS have a large multitude and manufactured capital that works to create value.

Natural Capital

Within the FEMAs FY, 2020 financial report natural capital is not covered. The mission

and goals of FEMA are all related to natural disasters and prevention, preparedness, and

recovery, this shows the relationship FEMA has with nature and that it values the environment.

Human Capital

FEMA alone regularly employs over 20,000 workers and during times of major disasters

workforces numbers can exceed 50,000 employees. The average salary across the agency is

$82.088.26 annually which is on par with the U.S. average (fema.gov). The annual report for

DHS includes the diversity management section that shows the diversity within the organization

including the FEMAs workforce.

1
Department of Homeland Security. (2021). EEO Diversity Management. Dhs.gov.
https://www.dhs.gov/dhs-diversity-planning
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Relational Capital
Relational capital is important to FEMA and the capstone doctrine Pub 1 shows the value

of relationships within the organization. The symbolic value is prevalent and dynamic within

FEMA and the act of exchange between those in relation with one another helps to build and

generate symbolic value within the agency. The embeddedness of the employees of FEMA and

FEMA within DHS is evident in the financial reports being inclusive and not separate from one

another. As a government agency, the political capital is readily seen with the formal levels of

authority and chain of command that FEMA holds.

Symbolic Capital
The intellectual capital of FEMA is not measured within the DHS financial report or

annual report but is clearly strong and a valued asset to the organization. The word “training” is

mentioned over 20 times within the FY 2020 financial report and while not explored directly as

an asset is included with the measurement of human capital. Part of FEMA’s value creation story

is spreading knowledge and educating the community and to do so employees must possess the

knowledge. Through documents like Pub 1 and the 2018-2022 Strategic plan, FEMA shows the

investment in human and intellectual capital. FEMA discusses the agency’s culture in a

qualitative narrative and doesn’t try to quantify it. “The critical difference in successful

emergency response organizations is that the successful organization maximizes the use of the

“intellectual capital” found in the organization’s members. Organizations that are unable or

unwilling to make use of the intellectual capital will be ineffective in an emergency. Exemplary

emergency response systems rely on the capabilities of all the personnel involved, not just those

of a few in leadership positions” (fema.gov). Every member of FEMA understands the mission

and is prepared to act and fulfill that mission regardless of title. “We are FEMA” is an important

mantra seen throughout Pub 1 and fema.gov culture is a large part of the importance of the

missions and values of the organization.

Structural Capital
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The organizational structure of the Federal Emergency Management Agency is

hierarchical with a well-established chain of command that is known by employees. There are

many layers to the structure of FEMA as there are 10 regions encompassed within the country

and headquarters in Washington D.C., but throughout all the regions the same culture is held and

the agency’s systems remain in place. The design of FEMA works within each region to

accomplish the mission by utilizing the data, systems, and knowledge that the agency holds. The

frontline of FEMA is found in its reservists and relief workers who arrive at disaster scenes to

provide immediate assistance, this frontline builds trust between the community and the agency.

The hierarchical structure of management backs the frontline and runs the logistics. This

structure is what has made FEMA successful and makes up the frame of FEMA.

Stakeholders & Accountability

Stakeholder Analysis
Performing a stakeholder analysis on the Federal Emergency Management Agency, or

FEMA, involved looking at several different stakeholder groups and how they bridge and bond

with one another within the organization. Three primary stakeholder groups found are the

employees, the consumers, and lastly the regulators. Secondary Stakeholders can be seen in

lobbyists and local governments. The Federal Emergency Management Agency can continue to

improve upon its social capital by understanding its stakeholders and building relationships by

working to build bridges and improving reciprocity.

FEMA Stakeholder Analysis - Rachael Stiver

Stakeholders Objectives How objectives How company How stakeholders

are achieved benefits benefit

Employees - To serve the needs Filing reports and Accountability is Stakeholders

Primary of the country entering achieved from the benefit when the
stakeholders when disaster information into bottom up and a company benefits
strikes. An databases to level of by seeing positive
emphasis on maintain transparency with results and
supporting the transparency and taxpayers is building bonds
Department of accountability maintained. Media and social capital.
Homeland both horizontal relations are Wages increase,
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Security and and vertical. positive and relief benefits become

supporting Maintaining efforts are better when the
Coronavirus relief media presence successful. economy is stable.
and assistance. and being present Successful social
at national capital leads to
emergencies and human capital.
areas affected by a Mission delivery
disaster. Working and fulfillment.
alongside and
bridging with
other
organizations such
as the American
Red Cross, local
disaster agencies,
and community
volunteer groups.

Beneficiaries of Receive Fill out and file Provides service Provides a

services - primary emergency help applications for and builds social first-hand
stakeholder’s when needed and assistance and capital and experience and
see transparency grants. Request network by can be used for
in reports and FEMAs services building reviews and
allocations. Grants and learn about reciprocity. Stays accountability.
and allocations for the process and in business and of
rebuilding and programs relevance as
emergency available. services are
services. required and
utilized.

Regulators - Pass public policy Advocating for Keeps FEMA Stakeholders see
(Legislators, in favor of the bills and policies. running and able the annual reports
Government core Keeping FEMA to expand and as fiscal and
officials) Primary responsibilities of running smoothly respond to performance-base
stakeholders FEMA and work and operational by situations. This d and see how the
to aid the agency maintaining group specifically organization is
through the support and really relies on doing and what
CARES act. guidance. reciprocity and needs have been
requires a lot of met. Re-election
trusts or else the and job security.
cycle of
reciprocity is
broken.

Lobbyists Shaping policy Meeting and Learning about Policies enacted

and purchasing submitting special interests benefit them. For
decisions to proposed policy and proposed example,
benefit a language to remedies. awarding of
particular FEMA contracts or
company or policymakers and funding.
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community. administrators.

Secondary Maintain Local Legislative Fulfilling mission Receiving loans

Stakeholders eligibility with hearings. statement. and disaster grants
Local federal Meetings to Learning about to help rebuild
Governments government grants propose local government after a disaster.
and loans. Provide preparedness policies and Communities feel
answers for plans. helping to prepare safer and more
constituents and communities. prepared for
provide Loan payment emergencies.
assistance. Work income.
alongside FEMA
to rebuild and
prepare
communities for
disaster.

Accountability
Vertical and horizontal accountability are both seen within FEMA in the more official

capacity vertical accountability is used following the chain of command and the management

structure. Reports are made and sent to superiors to be audited and dependant on the

circumstances continue to go up the chain of command. In the field during times of emergency

when rules and regulations become subconscious the use of horizontal accountability is seen

between the community members, volunteers, and FEMA employees. When the community

holds FEMA accountable for their actions or inactions FEMA can develop growth and learn

from less than optimal outcomes. Foror example, both the Post-Katrina Emergency Management

Reform Act 2006) and the Sandy Recovery Reform Act (2013) show FEMA reciprocating the

accountability from the community. By showing transparency and working to reform, FEMA

rebuilds the trust and relationships with stakeholders. The premise of FEMA is humans helping

humans and this benefits all the stakeholders.

Risks and Externalities

Risks
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A risk FEMA has identified is an economic failure, such as a recession or depression, a

loss in tax revenue would mean large cuts to DHS and FEMA budgets and resources. A

nationwide natural disaster or emergency is another risk identified. A loss in personnel and the

mass scale of a nationwide emergency could potentially hinder FEMA. The risk of

miscommunication when operating with third parties like the Center for Disease Control (CDC),

Department of Natrual Resources (DNR), and other agencies are seen with a spike in wildfires

along with the Covid-19 pandemic. Working to establish clear communication and understanding

can help to mitigate any potential risk.

Externalities
A negative externality FEMA has experienced is the third party local government

agencies and the repetition of core paperwork and ​FEMA “must streamline and integrate existing

disaster assistance programs and processes, creating innovative and efficient solutions to provide

the most effective survivor support” (2018-2022 FEMA Strategic Plan). The complexity of

multiple levels of government needs to be reduced by sharing data and avoiding duplication of

paperwork for survivors. FEMA works to promote positive externalities when rebuilding areas

that have been destroyed. Positive externalities are also seen with FEMA working on

technological advances like the Integrated Public Alert and Warning System (IPAWS) and

FEMA-connected radio stations that have electromagnetic pulse resilience. This technology has

been integrated into the community and is shared with other government agencies both local and

federal. The work of establishing and expanding more radio stations helps local first responders

with better radio communication.

Recommendations
There are a couple of areas that I find space for improvement from both DHS and FEMA. The

integration of separate financial reports as well as the Department of Homeland Security report

would create even more transparency and accountability with the public about financial

information. Another area improvement that would be beneficial is the simplification of the
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website accessibility. In today’s age where technology is driving how people gain information,

having an easily accessible and navigable site is imperative to building trust between consumers

and organizations. Fema.gov is less navigable than dhs.gov or govinfo.gov and could use an

overhaul that introduces easy access to grant portals and resources. The discussion and

transparency of intellectual capital and natural capital within the annual report would be an

added bonus. Of course, the understanding that the federal government has levels of security that

keeps some information private should be noted. The last area of recommendation I have is for

FEMA to work on more expansive and multifaceted public outreach. Again utilizing the internet

and local governments and communities to help spread information on flood insurance and

emergency preparedness would help achieve some of the goals FEMA has set. By reaching more

people of different age demographics FEMA can share its value creation story and find more

stakeholders.

Conclusion
To conclude this integrated report on The Federal Emergency Management Agency, the

culture and values of FEMA have built an accountable and nested system that strives to prove its

mission statement by “helping people before, during, and after disasters” (fema.gov). 2020

proved to be a historic year for FEMA with, “​​230 presidentially declared emergencies and major

disasters, passing the previous high of 128 declarations in 2011” (FEMA Led Historic Pandemic

Response, Supported Record Number of Disasters in 2020). FEMA utilized its capitals,

stakeholders, and value creation process to complete its mission.

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References

Department of Homeland Security. (2021). EEO Diversity Management. Dhs.gov.

https://www.dhs.gov/dhs-diversity-planning

Department of Homeland Security.. (2020, November 16). The Department of Homeland

Security (DHS) Agency Financial Report for FY 2020. Fema.gov.

https://www.dhs.gov/sites/default/files/publications/dhs_agency_financial_report_fy2020

.pdf

Federal Emergency Management Agency. (2021). About Us. fema.gov.

https://www.fema.gov/about

Federal Emergency Management Agency. (2021, January 11). FEMA Led Historic Pandemic

Response, Supported Record Number of Disasters in 2020.

https://www.fema.gov/press-release/20210111/fema-led-historic-pandemic-response-supp

orted-record-number-disasters-2020

Federal Emergency Management Agency. (2021, October 12). Offices and Leadership. fema.gov.

https://www.fema.gov/about/organization/offices-leadership

Federal Emergency Management Agency. (2019). Publication 1. fema.gov.

https://www.fema.gov/sites/default/files/2020-03/publication-one_english_2019.pdf

Federal Emergency Management Agency. (2018). 2018-2022 Strategic Plan. fema.gov.

https://www.fema.gov/sites/default/files/2020-03/fema-strategic-plan_2018-2022.pdf

Federal Emergency Management Agency. (2013, March 22). Testimonials. “It Can Happen To

You” - Evonne Richards. Ready.gov. https://www.ready.gov/testimonials