The Government Finance Officers Association (GFOA) provides best practices for business preparedness and continuity to help governments ensure essential operations continue in the face of disruptions. These best practices address critical issues such as risk assessment, plan development, and identifying essential functions. This report examines these best practices in detail, drawing on information gathered from the GFOA.
The GFOA is a professional association of more than 24,000 finance professionals across the United States and Canada 1. The organization provides resources, education, and advocacy for its members, promoting excellence in government financial management. GFOA Best Practices identify specific policies and procedures that contribute to improved government management 2. These best practices are proactive steps that governments should be taking to promote positive change and recognize excellence in government finance 2. In addition to best practices, the GFOA offers a range of award programs that recognize excellence in government finance 1. These awards highlight the achievements of governments and individuals in areas such as financial reporting, budgeting, and treasury management.
GFOA recommends that governments develop, test, and maintain a plan to continue their basic business operations during and immediately after disruptive events 3. Disruptions can arise from various causes, including natural disasters, terrorism, and technology failures 4. Governments have a responsibility to minimize disruptions to essential services that impact public health and safety and protect property 4.
A critical aspect of business preparedness and continuity is risk assessment. The GFOA emphasizes the importance of identifying and evaluating potential risks to a government's operations, property, services, and employees 3. This includes assessing potential areas of insurance coverage and understanding pre-qualifications like flood zone compliance and building codes 4. The concept of "resiliency" is central to the GFOA's approach to risk assessment 4. Resiliency emphasizes the capacity of infrastructure, operations, and social systems to respond to and recover from extreme events. By distinguishing critical systems and recognizing vulnerabilities, governments can plan and budget for resiliency-enhancing projects 4. Incorporating resiliency into the capital planning process is also crucial for long-term financial sustainability 5. This involves considering the likelihood of disasters and proactively working to reduce their effects on the community. Finance officers play a key role in risk assessment and need specific skills in risk awareness, assessment, and management 6.
An updated business continuity plan is crucial for finance offices to provide essential services during disruptions 7. GFOA provides guidance on developing a comprehensive business continuity plan. Key recommendations include:
Determine which business functions are critical and cannot be suspended for an extended period 4. This involves reviewing business plans, standard operating procedures, and organizational charts to identify functions that cannot be suspended for more than 30 days and those that need to be restored within 12 hours 8.
Formally assign personnel from each department to a disaster and emergency recovery team 4. The assignment of personnel should be planned, and a strong business continuity plan maps out an organizational structure and lists roles and responsibilities so employees are aware of their tasks 4.
Establish clear communication channels and backup systems for emergencies 4. This includes having updated contact information for all essential employees and ensuring that communication systems can function during disruptions.
Develop a plan for contemporaneous record keeping in a format acceptable to the Federal Emergency Management Agency (FEMA) 4. This ensures that critical records are preserved and can be accessed during and after an emergency.
Establish agreements with other organizations for support during emergencies 4. These agreements can provide access to resources and personnel that may not be available internally.
Identify and secure necessary outsourced services for recovery 4. This may include services such as data recovery, IT support, and temporary staffing.
Protect the disaster and emergency recovery plan from damage or loss 4. This can be achieved by storing copies of the plan in secure locations, both on-site and off-site.
In addition to these recommendations, the GFOA highlights the importance of including key elements in a business continuity plan 9. These elements include:
Identifying essential functions is crucial for business continuity planning 4. Governments need to determine which services are critical to public health and safety and require immediate restoration following a disruption 8. This involves reviewing business plans, standard operating procedures, and organizational charts to identify functions that cannot be suspended for more than 30 days and those that need to be restored within 12 hours 8. Disaster preparedness should be an integral part of overall government planning, and essential functions should be considered within this broader context 5.
The GFOA's Disaster Finance Resource Center provides valuable resources and support for government finance professionals in preparing for and responding to disasters 10. The center offers tools and information to help governments assess risk, develop response plans, adopt essential policies, and implement appropriate systems for disaster management.
The GFOA offers various training and resources to support the implementation of its best practices. These include:
While specific examples of how government organizations have implemented GFOA best practices are limited in the research conducted, some insights can be gleaned. The U.S. Department of Agriculture's National Finance Center (NFC) provides a good example of preparedness. The NFC, which provides payroll services for over half a million federal employees, ensured workers were paid on time during and after Hurricane Katrina due to its strategic disaster planning 13.
While the GFOA does not offer specific templates for developing a business preparedness and continuity plan, it recommends utilizing resources from FEMA 4. These resources include:
|
Resource |
Description |
|---|---|
|
Emergency Operations Planning Guidance |
Provides guidance on developing emergency operations plans. |
|
Interim Guidelines for Terrorist Incidents |
Offers specific guidance for preparing for and responding to terrorist incidents. |
|
Tool Kit for Terrorist Incidents |
Provides tools and resources for managing terrorist incidents. |
|
State and Local Guide for All-Hazards Emergency Operations Plan |
Offers a comprehensive guide for developing all-hazards emergency operations plans. |
|
Emergency Operations Center Assessment Checklist |
Provides a checklist for assessing the functionality of emergency operations centers. |
|
Continuity of Operations Guidance for State and Local Governments |
Offers guidance on ensuring the continuity of essential government operations during emergencies. |
The GFOA's best practices for business preparedness and continuity offer valuable guidance for governments seeking to ensure essential operations continue during and after disruptive events. By focusing on risk assessment, plan development, and identifying essential functions, governments can enhance their resilience and ability to serve the public in times of crisis. The GFOA's emphasis on proactive planning, risk mitigation, and the development of comprehensive continuity plans provides a framework for governments to effectively manage disruptions and maintain essential services.
The GFOA's resources, such as the Disaster Finance Resource Center, Fiscal First Aid materials, and best practice publications, offer valuable tools and information for government finance officers. By utilizing these resources and engaging in professional development activities, finance officers can enhance their skills in risk assessment, plan development, and disaster response.
Based on the research findings, the following recommendations are offered for government finance officers:
By implementing these recommendations, government finance officers can play a critical role in ensuring the continuity of essential services and the financial stability of their organizations in the face of unexpected events.