The Federal Emergency Management Agency (FEMA) requested that we audit the grant (EMW-2009-FC-06054R) to Volunteer Fire and Rescue of Harrison Township (Fire and Rescue). FEMA asked for the audit to help resolve concerns over delays by Fire and Rescue in initiating the project and allegations about the size and location of the project and the award of construction contracts. Fire and Rescue requested and received a grant of $1,149,490 for construction of a new fire station. The grant specified a period of performance from September 25, 2009, to September 24, 2012. As of January 23, 2012, Fire and Rescue had broken ground for the new station and had incurred costs of $76,591 for plans, building materials, and other initial project costs. Fire and Rescue has billed for and received from FEMA reimbursement of $10,000.