Presentation on theme: "Finance’s Role in Continuity of Operations (COOP) and Emergency Response March 12, 2014."— Presentation transcript:
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 ExerciseFinancial VulnerabilityOverview of COOP / BCFinance in COOP/BCOverview of Emergency Operations / ResponseFinance in Emergency ResponseTraining and ExercisesTying 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 ScenarioMarch 12th, 8:30am: a 6.4 earthquakes hits the region where your campus is located.The University has experienced extensive damage:Finance buildingBuilding where IT servers are housedAdministration buildingIngress and egress routes blockedPower outagesSurrounding community has been affectedThe Governor has asked for a disaster declaration by the U.S. President.
6 PRIORITYNumberISSUEAPAYROLL WEEK1Bprocurement of resources for emergency responseCSTUDENT LOANS AND FINANCIAL AID PAYMENTSEtc.DMAINTAINING INFORMATION FOR FINANCIAL REPORTINGESEND A REPRESENTATIVE TO THE EMERGENCY OPERATIONS CENTER (EOC)FACTIVATE EMERGENCY PURCHASING CARDS2GUNNACCOUNTED FOR FINANCE STAFF MEMBERSHISSUE PAYMENTS TO VENDORS AND CREDITORS3IALTERNATE WORK LOCATIONJFEMA REIMBURSEMENT AND INSURANCE
7 Disaster Priorities Exercise Learning PointsThere 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, 2001New Orleans Universities in Hurricane Katrina, 2005Virginia Tech shootings, 2007University of Northern Illinois shooting, 2008University of Alabama Huntsville workplace violence, 2010Florida International University stabbing, 2010UC Davis Pepper Spray Incident, 2011University of Alabama Tornado, 2011Penn State scandal, 2011Boston Marathon Bombings, 2012
11 Continuity of Operations/ BC Mitigation and Preparedness Emergency ResponseRecoveryContinuity of Operations/ BCMitigation and Preparedness
12 COOP / Business Continuity Emergency Operations / Response
13 $I’m Continuity.I’m a PC.I’m Emergency Response.I’m a MAC.
14 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.
15 COOP/BC vs. Emergency Operations Initial life safety actionsEmergencyOccursEmergency response continues, then ramps down; COOP actions increasePeak of COOP actionsCOOP actions continue as needed, with an attempt to ramp down and return to normal operationsCOOPEmergency Response[Time]Return to normal operations
17 COOP/BC Elements COOP/BC Management Team Essential Functions Succession of LeadershipNotification/CommunicationsCritical ResourcesVital RecordsInterdepartmental RelationshipsAlternate Facility Requirements/Relocation
18 Essential FunctionsEssential 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 rulesIntegral to the Division and Department’s missionThat provide vital support to another department or CSU campusEssential functions are those that enable an organization to:Provide vital servicesExercise governance authorityMaintain the safety of the entity’s community (e.g., staff, faculty, vendors, students, and visitors)Sustain the industrial and economic baseIdentifying Essential FunctionsDepartments will determine recovery time priorities for functions that must be continued in all circumstancesBasis for determining resource requirements
22 COOP/Business Continuity Guidance Continuity Guidance Circular 1 (CGC 1) Non-Federal Entities, January 21, 2009FEMA Continuity Guidance Circular 2 (CGC 2), July 22, 2010Cal EMA Continuity Guidance and Plan Template, December 2009CSU Executive Order 1014 – California State University Business Continuity Program
24 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 FunctionsRecovery timesWhat is needed to continue functionsRisk mitigationDefine strategiesDevelop Incident ManagementGet approval of strategiesDevelop action-oriented COOP PlanDevelop support plans: Disaster Recovery, Relocation, CommunicationTrainTestExerciseReview and revise plan documentsLet everyone know what to do in disruption
25 Creating a COOP Plan COOP Planning Process Introductory meetings Meetings with senior managementMeetings with departmentsDocument reviewPlan developmentPlan revisionsDistribution of DRAFT PlanElectronic solutions (Kuali)
26 Creating a COOP Plan Plan for: Utility outage IT outage Building Loss Staff shortage
27 Creating a COOP Plan Base Plan Department Annexes Quick Guides Vulnerabilities, Planning Assumptions, AuthoritiesEssential Elements of COOP ViabilityCOOP Program ManagementImplementationDepartment AnnexesWorkaround ProceduresEssential Functions DetailsSuccession of Leadership
28 Finance in COOP/BC Dual role: Part of the overall COOP organizational structureA department with essential functions
29 Finance in COOP/BC Essential part of the planning team Critical essential business functions:Procurement of goods and servicesAccounts payableAccounts receivableFinancial reportingPayrollAccountingFinancial Aid/Student LoansAuxiliaries
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 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 ImplementationDepartmentsCOOP Coordination LeaderExternal PartnersPolicy GroupCoordination UnitFacilities and Logs UnitFinance / Documen-tation UnitThis 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.
35 Emergency Operations / Response Elements Life safety, protection of property and the environment, maintaining reputationEmergency response structurePolicy GroupEmergency Operations CenterFirst RespondersExternal PartnersEmergency Notification and Crisis CommunicationsPlans, 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 EducationComprehensive Preparedness Guide (CPG) 101National Incident Management System (NIMS)Homeland Security Exercise and Evaluation Program (HSEEP)National Preparedness Goal, National Response Framework, National Recovery Framework
39 Another way to look at it Command Staff“Deciders”OPERATIONSSECTION“Doers”PLANNING“Thinkers”LOGISTICS“Getters”FINANCE/ ADMIN“Payers”Policy Group“Guiders””
40 Finance/Admin Section: The Payers Main ResponsibilitiesMonitors costs related to the incident.Provides accounting, procurement, time recording, and cost analyses.Maintains documentation for reimbursement and insurance.
41 Finance/Admin Section: The Payers Section ChiefProcurementUnitCompensation/Claims UnitTime UnitCost 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 FunctionsInformation collection and evaluationCoordinationPriority settingResource coordinationCommunications facilitation
44 FEMA Public Assistance Proper documentation is a must (track everything!)Coordination with Cal OES is essentialPre-train if possibleGo through the appropriate steps to acquire resourcesGo through the appropriate steps for reimbursement
45 Training and Exercises Develop a multi-year training and exercise plan
46 Training and Exercises Train all emergency personnel (decision makers, operational staff, responders)Train people on how to use the plan, the guidance, and the systemStandardized courses from the FEMA Independent Study program
47 Training and Exercises Homeland Security Exercise and Evaluation Program (HSEEP)Discussion BasedSeminar; Workshop; Tabletop Operations BasedDrill; Functional; Full-Scale
48 Continuity of Operations/ BC Mitigation and Preparedness Tying it all together…Emergency ResponseRecoveryContinuity of Operations/ BCMitigation and PreparednessDepartmentsCOOP Coordination LeaderPolicy GroupCoordination UnitFacilities and Logs UnitFinance / Documen-tation UnitCommand Staff“Deciders”OPERATIONSSECTION“Doers”PLANNING“Thinkers”LOGISTICS“Getters”FINANCE/ ADMIN“Payers”Policy Group“Guiders”
49 Continuity of Operations/ BC Information FlowEmergency ResponseRecoveryContinuity of Operations/ BCMitigationBOTPresidentEmergency OperationsCOOP / BCPolicy GroupEmergency Operations CenterCOOP Coordination Team$$$$$DepartmentsIncident Command PostFirst Responders
50 TakeawaysWhat 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?