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

1. Finance’s Role in Continuity of Operations (COOP) and Emergency Response March 12, 2014

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

3. 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

4. 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.

5. Disaster Priorities Exercise • Scenario • March 12th, 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.

7. Disaster Priorities Exercise • Learning Points • There is no right or wrong answer. You are the senior officials make policy decisions. • 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? • 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? • Are the right people sitting at the table (i.e., people who have the authority to set priorities and implement decisions)? • Communications are critical. How will information be coordinated? Do you have a crisis communications strategy?

8. Financial Vulnerability • Universities and colleges are vulnerable to (expensive) emergencies and disasters…

9. 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

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

12. COOP / Business Continuity Emergency Operations / Response

13. $ $ $ $ $ $ $ $ $ $ $ $ $ $ I’m Emergency Response. I’m a MAC. I’m Continuity. I’m a PC.

14. COOP/BC vs. Emergency Operations • Emergency operations and response is what needs to be done becauseof an emergency or disaster. • Continuity of operations / business continuity is what needs to be done despitean emergency or disaster.

15. COOP/BC vs. Emergency Operations [Time] Emergency Response COOP Emergency response continues, then ramps down; COOP actions increase Initial life safety actions COOP actions continue as needed, with an attempt to ramp down and return to normal operations Return to normal operations Peak of COOP actions Emergency Occurs

16. COOP/ Business Continuity

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

18. 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

19. Essential Functions (cont) • Essential Functions include all functions: • Explicitly assigned by law or grant/contract rules • 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: • Provide vital services • Exercise governance authority • 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 • Departments will determine recovery time priorities for functions that must be continued in all circumstances • Basis for determining resource requirements

20. Essential Functions (cont) • Prioritizing essential functions

21. - Ready.gov

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

23. Creating a COOP Plan From: Ready.gov

24. Creating a COOP Plan

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

26. Creating a COOP Plan • Plan for: • Utility outage • IT outage • Building Loss • Staff shortage

27. Creating a COOP Plan • Base Plan • 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

28. Finance in COOP/BC • Dual role: • Part of the overall COOP organizational structure • A department with essential functions

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

30. 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.

31. COOP Implementation 4 Parts to COOP Implementation Ascertain: Are we in a COOP situation? How do we manage the event? What must be continued? What strategies are needed to continue our business?

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

33. COOP Implementation Policy-level decisions Coordination Decisions Tactical Decisions COOP Executive Team COOP Coordination Team Departments

34. Emergency Operations / Response

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

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

37. Emergency Response Implementation Policy-level decisions Coordination decisions Tactical decisions Policy Group Emergency Operations Group Emergency Responders

38. Incident Command System (ICS)

39. Another way to look at it Policy Group “Guiders””

40. Finance/Admin Section: The Payers • Main Responsibilities • Monitors costs related to the incident. • Provides accounting, procurement, time recording, and cost analyses. • Maintains documentation for reimbursement and insurance.

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

42. 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

43. Emergency Operations Center (EOC) • EOC Functions • Information collection and evaluation • Coordination • Priority setting • Resource coordination • Communications facilitation

44. 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

45. Training and Exercises • Training and Exercises • Develop a multi-year training and exercise plan

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

47. Training and Exercises • Exercises • Homeland Security Exercise and Evaluation Program (HSEEP) • Discussion Based • Seminar; Workshop; Tabletop • Operations Based • Drill; Functional; Full-Scale

48. Tying it all together… Policy Group COOP Coordination Leader Policy Group “Guiders” Coordination Unit Facilities and Logs Unit Finance / Documen-tation Unit Departments

49. Information Flow BOT President Emergency Operations COOP / BC Policy Group Emergency Operations Center COOP Coordination Team $$$$$ Incident Command Post Departments First Responders

50. Takeaways • What is something you learned about Finance’s role in continuity of operations planning? • COOP “to do list” • What is something you learned about Finance’s role in emergency operations and response? • Emergency operations “to do list” • What else are you taking back to your university from this presentation?