[StBernard] FEDERAL MANAGERS DAILY REPORT

[Westley Annis]

This article was in the Federal Managers Daily Report.
 
 
1. Flood Insurance Program Designated High-Risk The Government
Accountability Office, unsurprisingly, has designated the national flood
insurance program as high-risk, following the unprecedented losses to the
program following hurricanes in 2005 -- estimated at $23 billion. 

In testimony before the Senate oversight, government management and federal
workforce subcommittee, Comptroller General David M. Walker noted that the
losses exceeded the total claims paid out in the history of the program -
$15 billion - and illustrate the federal government's exposure to claims
coverage in catastrophic loss years. 

Walker said it's highly unlikely that the NFIP could generate enough revenue
to repay funds borrowed from the Treasury to cover the claims in 2005, let
alone future claims in catastrophic loss years. 

GAO has reported on issues affecting the program for about 15 years,
including compliance with mandatory purchase r equirements, the costly
impact of repetitive loss properties, and most recently, concerns about the
Federal Emergency Management Agency's $1.5 billion flood map modernization
efforts, as well as its management and oversight of the NFIP. 

FEMA has taken steps to address these concerns by trying to reduce the
number of subsidized and repetitive loss properties insured by the program,
increase participation in the program, implement requirements of the Flood
Insurance Reform Act of 2004, and improve program management and oversight,
Walker said. 

Nonetheless, he said the agency faces long-standing and complex challenges
that make it likely that these issues will continue.  

2. Walker Recommends More Stringent Building Codes, Repossessing Properties
FEMA must continue to adopt and enforce more stringent building codes for
construction in areas at risk of flooding and stricter development and
zoning regulations that steer development away from flood areas, Walker also
said. 

He also said the agency should use public funds to acquire damaged homes or
businesses in flood-prone areas, demolish or relocate the structures, and
use properties for open space, wetlands, or recreational uses. 

Walker testified that FEMA must provide effective management and oversight
of NFIP operations because the agency relies on others to address those
issues. 

Greater and sustained national focus and management attention is needed by
FEMA and DHS, as well as legislative action to help them address the
challenges, similar to flood insurance reform legislation in 1994 and 2004,
he said.