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

MITIGATION I PREPAREDNESS I RESPONSE I RECOVERY I STRATEGIC ADVICE

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

March 12, 2014

• Name• Title• University • What is your role in

COOP and emergency response? How do you feel about it?

Introductions

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

• 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

• Scenarioo March 12th, 8:30am: a 6.4 earthquakes hits the region where

your campus is located. o The University has experienced extensive damage:− Finance building− Building where IT servers are housed− Administration building− Ingress and egress routes blocked− Power outages

o Surrounding community has been affectedo The Governor has asked for a disaster declaration by the U.S.

President.

Disaster Priorities Exercise

PRIORITY Number ISSUE

  A PAYROLL WEEK

1 BPROCUREMENT OF RESOURCES FOR EMERGENCY RESPONSE

  C STUDENT LOANS AND FINANCIAL AID PAYMENTS

Etc. D MAINTAINING INFORMATION FOR FINANCIAL REPORTING

  ESEND A REPRESENTATIVE TO THE EMERGENCY OPERATIONS CENTER (EOC)

  F ACTIVATE EMERGENCY PURCHASING CARDS

2 G UNNACCOUNTED FOR FINANCE STAFF MEMBERS

  H ISSUE PAYMENTS TO VENDORS AND CREDITORS

3 I ALTERNATE WORK LOCATION

  J FEMA REIMBURSEMENT AND INSURANCE

• Learning Points1. 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?

Disaster Priorities Exercise

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

Financial Vulnerability

Virginia Tech shootings, 2007

University of Alabama Huntsville workplace violence, 2010

Florida International University stabbing, 2010

UC Davis Pepper Spray Incident, 2011

Penn State scandal, 2011

New Orleans Universities in Hurricane Katrina, 2005

University of Northern Illinois shooting, 2008

CSU Northridge earthquake, 1994

University of Alabama Tornado, 2011

Boston Marathon Bombings, 2012

Pace University 9/11 terrorist attacks, 2001

Vulnerability• Earthquakes• Tsunami• Wildfires• Floods• Drought• Criminal Acts• Hazardous Materials

Incidents• Utility Failures• Loss of Infrastructure

Emergency Response

Recovery

Continuity of Operations/ BC

Mitigation and Preparedness

Emergency Operations /

Response

COOP / Business

Continuity

I’m a PC. I’m a MAC.I’m Continuity. I’m Emergency 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

Return to normal operations

Initial life

safety actions

EmergencyOccurs

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

COOPEmergency Response

[Time]

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 ruleso Integral to the Division and Department’s missiono That provide vital support to another department or CSU campus

• Essential functions are those that enable an organization to:o Provide vital serviceso Exercise governance authorityo Maintain the safety of the entity’s community (e.g., staff, faculty, vendors,

students, and visitors)o Sustain the industrial and economic base

• Identifying Essential Functionso Departments will determine recovery time priorities for functions that must

be continued in all circumstanceso 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)

DESIGN(Agree on Continuity Strategies)

IMPLEMENT(Document Steps to Follow)

VALIDATE(Rehearse, test, exercise, review)

EMBED(Awareness)

• ID Functions•Recovery

times•What is

needed to continue functions•Risk

mitigation

•Define strategies•Develop

Incident Management•Get approval

of strategies

•Develop action-oriented COOP Plan•Develop

support plans: Disaster Recovery, Relocation, Communication

• Train• Test• Exercise• Review

and revise plan documents

•Let everyone know what to do in disruption

Creating a COOP Plan

• COOP Planning Processo Introductory meetingso Meetings with senior

managemento Meetings with departmentso Document reviewo Plan developmento Plan revisionso Distribution of DRAFT Plano Electronic solutions (Kuali)

Creating a COOP Plan

• Plan for:o Utility outageo IT outageo Building Losso Staff shortage

Creating a COOP Plan

• Base Plano Quick Guideso Vulnerabilities, Planning

Assumptions, Authoritieso Essential Elements of COOP

Viabilityo COOP Program Management o Implementation

• Department Annexes• Workaround Procedures• Essential Functions Details• Succession of Leadership

Finance in COOP/BC

• Dual role:o Part of the overall

COOP organizational structure

o A department with essential functions

Finance in COOP/BC

• Essential part of the planning team• Critical essential business

functions:o Procurement of goods and

serviceso Accounts payableo Accounts receivableo Financial reportingo Payrollo Accountingo Financial Aid/Student Loanso Auxiliaries

• 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.

Lessons Learned from the CO

4 Parts to COOP Implementation

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

Departments

COOP Coordination Leader

External Partners

Policy Group

Coordination Unit

Facilities and Logs Unit

Finance / Documen-tation Unit

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 Executive Team

COOP Coordination Team

Departments

Policy-level decisions

Coordination Decisions

Tactical Decisions

COOP Implementation

Emergency Operations / Response

• Life safety, protection of property and the environment, maintaining reputation• Emergency response structureo Policy Groupo Emergency Operations Centero First Responderso External Partners

• Emergency Notification and Crisis Communications• Plans, training, exercises

Emergency Operations / Response Elements

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) 1014. 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)

Command Staff“Deciders”

OPERATIONS SECTION“Doers”

PLANNING SECTION

“Thinkers”

LOGISTICSSECTION “Getters”

FINANCE/ ADMINSECTION“Payers”

Another way to look at it

Policy Group“Guiders””

Finance/Admin Section: The Payers

• Main Responsibilitieso Monitors costs related to the

incident. o Provides accounting,

procurement, time recording, and cost analyses.

o Maintains documentation for reimbursement and insurance.

Finance/Admin Section: The Payers

Finance / Admin

Section Chief

Procurement

UnitCompensation/

Claims UnitCost UnitTime 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 Functionso Information collection and

evaluationo Coordinationo Priority settingo Resource coordinationo 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 Exerciseso Develop a

multi-year training and exercise plan

Training and Exercises

• Trainingo Train all emergency

personnel (decision makers, operational staff, responders)

o Train people on how to use the plan, the guidance, and the system

o Standardized courses from the FEMA Independent Study program

Training and Exercises

• Exerciseso Homeland Security Exercise and

Evaluation Program (HSEEP)o Discussion Based− Seminar; Workshop; Tabletop 

o Operations Based− Drill; Functional; Full-Scale

Training and Exercises

Tying it all together… Emergency Response

Recovery

Continuity of Operations/ BC

Mitigation and Preparedness

Command Staff“Deciders”

OPERATIONS SECTION“Doers”

PLANNING SECTION

“Thinkers”

LOGISTICSSECTION “Getters”

FINANCE/ ADMIN

SECTION“Payers”

Policy Group“Guiders”

Departments

COOP Coordination Leader

Policy Group

Coordination Unit

Facilities and Logs

Unit

Finance / Documen-

tation Unit

Information Flow

President

Policy Group

BOT

Emergency Operations Center

Incident Command Post

First Responders

Departments

Emergency OperationsCOOP / BC

COOP Coordination Team

Emergency Response

Recovery

Continuity of Operations/ BC

Mitigation

$$$$$

• 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?

Takeaways

Questions?