We determined that in most instances, Texas distributed and spent the awards in compliance with applicable laws and regulations; however, the State lacked adequate controls over more than $1 million in grant funds we reviewed. This occurred because the Federal Emergency Management Agency and the State did not ensure adequate management and oversight of Homeland Security Grant Program funds. We made three recommendations, which when implemented, should enhance Texas’ effectiveness in the overall use of the grant funds to improve preparedness and response capabilities. Better management and oversight should also reduce the risk associated with the State’s management of grant funds. FEMA concurred with all three recommendations.