MITIGATION I

PREPAREDNESS

I RESPONSE I RECOVERY I STRATEGIC ADVICE

Finance’s Role in Continuity of Operations (COOP) and Emergency Response

March 12, 2014

Introductions

• • • •

Name Title University What is your role in COOP and emergency response? How do you feel about it?

Presentation Overview

• • Disaster Priorities Exercise Financial Vulnerability • • Overview of COOP / BC Finance in COOP/BC • Overview of Emergency Operations / Response • Finance in Emergency Response • • Training and Exercises Tying it all together

Disaster Priorities Exercise

• Please consider the following scenario and the 10 planning issues.

• Do not attempt to develop solutions.

• Come to a consensus on ranking numerically the issues in order of their importance.

• Use the Problem Matrix Table.

• Select a spokesperson to report out.

Disaster Priorities Exercise

•

Scenario

o o o o March 12 th , 8:30am: a 6.4 earthquakes hits the region where your campus is located. The University has experienced extensive damage: − − − − − Finance building Building where IT servers are housed Administration building Ingress and egress routes blocked Power outages Surrounding community has been affected The Governor has asked for a disaster declaration by the U.S. President.

PRIORITY 1 Number A B C ISSUE

PAYROLL WEEK PROCUREMENT OF RESOURCES FOR EMERGENCY RESPONSE STUDENT LOANS AND FINANCIAL AID PAYMENTS

Etc.

D E F

MAINTAINING INFORMATION FOR FINANCIAL REPORTING SEND A REPRESENTATIVE TO THE EMERGENCY OPERATIONS CENTER (EOC) ACTIVATE EMERGENCY PURCHASING CARDS

2 G

UNNACCOUNTED FOR FINANCE STAFF MEMBERS

H

ISSUE PAYMENTS TO VENDORS AND CREDITORS

3 I J

ALTERNATE WORK LOCATION FEMA REIMBURSEMENT AND INSURANCE

Disaster Priorities Exercise

•

Learning Points

1. There is no right or wrong answer. You are the senior officials make policy decisions.

2. Would more information would be helpful? What type of information? From what source would you be seeking this information? Will this source be available to you in the event of an emergency?

3. Could any of these priorities or decisions be made in advance? Have they been? If not, could they be adopted as policy in your plans? 4. Are the right people sitting at the table (i.e., people who have the authority to set priorities and implement decisions)?

5. Communications are critical. How will information be coordinated? Do you have a crisis communications strategy?

Financial Vulnerability

•

Universities and colleges are vulnerable to (expensive) emergencies and disasters…

CSU Northridge earthquake, 1994 Pace University 9/11 terrorist attacks, 2001 New Orleans Universities in Hurricane Katrina, 2005 Virginia Tech shootings, 2007 University of Northern Illinois shooting, 2008 University of Alabama Huntsville workplace violence, 2010 Florida International University stabbing, 2010 UC Davis Pepper Spray Incident, 2011 University of Alabama Tornado, 2011 Penn State scandal, 2011 Boston Marathon Bombings, 2012

Vulnerability

• • • • • • • • • Earthquakes Tsunami Wildfires Floods Drought Criminal Acts Hazardous Materials Incidents Utility Failures Loss of Infrastructure

Emergency Response Mitigation and Preparedness Continuity of Operations/ BC Recovery

COOP / Business Continuity Emergency Operations / Response

$ $ $ $ $ $ $ $ $ $ $ $ $ $

COOP/BC vs. Emergency Operations

• Emergency operations and response is what needs to be done

because

of an emergency or disaster.

• Continuity of operations / business continuity is what needs to be done

despite

an emergency or disaster.

COOP/BC vs. Emergency Operations

[Time]

Emergency Response COOP

Initial life safety actions Emergency Occurs Emergency response continues, then ramps down; COOP actions increase Peak of COOP actions COOP actions continue as needed, with an attempt to ramp down and return to normal operations Return to normal operations

COOP/ Business Continuity

COOP/BC Elements

• COOP/BC Management Team • • Essential Functions Succession of Leadership • • Notification/Communications Critical Resources • • Vital Records Interdepartmental Relationships • Alternate Facility Requirements/Relocation

Essential Functions

• Essential functions are the critical activities performed by organizations, especially after a disruption of normal activities.

• Although all functions within operations are important, some functions can be delayed for 30 days without significantly affecting the business operations of the University.

Essential ≠ Important

Essential Functions (cont)

• • •

Essential Functions include all functions:

o Explicitly assigned by law or grant/contract rules o o Integral to the Division and Department’s mission That provide vital support to another department or CSU campus

Essential functions are those that enable an organization to:

o o Provide vital services Exercise governance authority o o Maintain the safety of the entity’s community (e.g., staff, faculty, vendors, students, and visitors) Sustain the industrial and economic base

Identifying Essential Functions

o o Departments will determine recovery time priorities for functions that must be continued in all circumstances Basis for determining resource requirements

Essential Functions (cont)

• Prioritizing essential functions

- Ready.gov

COOP/Business Continuity Guidance 1. Continuity Guidance Circular 1 (CGC 1) Non-Federal Entities, January 21, 2009 2. FEMA Continuity Guidance Circular 2 (CGC 2), July 22, 2010 3. Cal EMA Continuity Guidance and Plan Template, December 2009 4. CSU Executive Order 1014 – California State University Business Continuity Program

Creating a COOP Plan

From: Ready.gov

Creating a COOP Plan

• • • •

ANALYSIS (Understand the Business)

ID Functions Recovery times What is needed to continue functions Risk mitigation

DESIGN (Agree on Continuity Strategies) IMPLEMENT (Document Steps to Follow)

• Define strategies • Develop Incident Management • Get approval of strategies • Develop action oriented COOP Plan • Develop support plans: Disaster Recovery, Relocation, Communication

VALIDATE (Rehearse, test, exercise, review)

• • • • Train Test Exercise Review and revise plan documents

EMBED (Awareness)

• Let everyone know what to do in disruption

Creating a COOP Plan

• COOP Planning Process o o Introductory meetings Meetings with senior management o o o o o Meetings with departments Document review Plan development Plan revisions Distribution of DRAFT Plan o Electronic solutions (Kuali)

Creating a COOP Plan

• Plan for: o o o o Utility outage IT outage Building Loss Staff shortage

Creating a COOP Plan

• •

Base Plan

o o o o o Quick Guides Vulnerabilities, Planning Assumptions, Authorities Essential Elements of COOP Viability COOP Program Management Implementation Department Annexes • • • Workaround Procedures Essential Functions Details Succession of Leadership

Finance in COOP/BC

• Dual role: o o Part of the overall COOP organizational structure A department with essential functions

Finance in COOP/BC

• • Essential part of the planning team Critical essential business functions: o Procurement of goods and services o o o Accounts payable Accounts receivable Financial reporting o o o o Payroll Accounting Financial Aid/Student Loans Auxiliaries

Lessons Learned from the CO

• • • • • • • • • Are we actually ready to work from home?

Which campus is our sister campus and is that campus ready to assist us?

Who do I need to call? How will I notify the Finance department staff members?

What are our lines of succession in an emergency?

What the heck is my password?

How do I continue to keep information secure?

Timing is everything.

We need executive buy-in.

Exercises are good.

COOP Implementation

4 Parts to COOP Implementation

1. Ascertain: Are we in a COOP situation?

2. How do we manage the event? 3. What must be continued?

4. What strategies are needed to continue our business?

COOP Implementation Policy Group COOP Coordination Leader Coordination Unit Facilities and Logs Unit Finance / Documen tation Unit External Partners Departments

This lends itself to enabling an over-arching COOP mission and strategy for the college, which would be described in the COOP Base Plan and provide guidance for the departmental plans.

COOP Implementation COOP Executive Team COOP Coordination Team Departments

Policy-level decisions Coordination Decisions Tactical Decisions

Emergency Operations / Response

Emergency Operations / Response Elements

• • • • Life safety, protection of property and the environment, maintaining reputation Emergency response structure o o o o Policy Group Emergency Operations Center First Responders External Partners Emergency Notification and Crisis Communications Plans, training, exercises

Emergency Management Guidance 1. Higher Education Opportunity Act of 2008 (Clery Act Amendments) 2. The Guide For Developing High-Quality Emergency Operations Plans for Institutions of Higher Education 3. Comprehensive Preparedness Guide (CPG) 101 4. National Incident Management System (NIMS) 5. Homeland Security Exercise and Evaluation Program (HSEEP) 6. National Preparedness Goal, National Response Framework, National Recovery Framework

Emergency Response Implementation Policy Group Emergency Operations Group Emergency Responders

Policy-level decisions Coordination decisions Tactical decisions

Incident Command System (ICS)

Another way to look at it OPERATIONS SECTION “Doers” Command Staff “Deciders” PLANNING SECTION “Thinkers” Policy Group “Guiders” ” LOGISTICS SECTION “Getters” FINANCE/ ADMIN SECTION “Payers ”

Finance/Admin Section: The Payers

•

Main Responsibilities

o o o Monitors costs related to the incident. Provides accounting, procurement, time recording, and cost analyses.

Maintains documentation for reimbursement and insurance.

Finance/Admin Section: The Payers Finance / Admin Section Chief Procurement Unit Time Unit Cost Unit Compensation/ Claims Unit

Emergency Operations Center (EOC) “Where uncomfortable officials meet in unfamiliar surroundings to play unaccustomed roles, making unpopular decisions based on inadequate information, and in much too little time.” -Art Botterell

Emergency Operations Center (EOC)

•

EOC Functions

o Information collection and evaluation o o o o Coordination Priority setting Resource coordination Communications facilitation

FEMA Public Assistance

• • • Proper documentation is a must (track everything!) Coordination with Cal OES is essential Pre-train if possible • Go through the appropriate steps to acquire resources • Go through the appropriate steps for reimbursement

Training and Exercises

•

Training and Exercises

o Develop a multi-year training and exercise plan

Training and Exercises

•

Training

o Train all emergency personnel (decision makers, operational staff, responders) o o Train people on how to use the plan, the guidance, and the system Standardized courses from the FEMA Independent Study program

Training and Exercises

•

Exercises

o o o Homeland Security Exercise and Evaluation Program (HSEEP) Discussion Based − Seminar; Workshop; Tabletop Operations Based − Drill; Functional; Full-Scale

Tying it all together…

Emergency Response Mitigation and Preparedness Recovery Policy Group COOP Coordination Leader Coordinatio n Unit Facilities and Logs Unit Finance / Documen tation Unit Departments Continuity of Operations/ BC OPERATIONS SECTION “Doers” Command Staff “Deciders” PLANNING SECTION “Thinkers” LOGISTICS SECTION “Getters” Policy Group “Guiders ” FINANCE/ ADMIN SECTION “Payers”

Information Flow

COOP / BC

Emergency Operations Center Departments President Policy Group $$$$$ Emergency Response Mitigation BOT

Emergency Operations

Continuity of Operations/ BC Recovery COOP Coordination Team Incident Command Post First Responders

Takeaways

• • •

What is something you learned about Finance’s role in continuity of operations planning?

o COOP “to do list”

What is something you learned about Finance’s role in emergency operations and response?

o Emergency operations “to do list”

What else are you taking back to your university from this presentation?

Questions?