Our audit objective was to determine whether the Department accounted for and expended Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. The Department received a PA award of $670,251 from the California Emergency Management Agency Cal EMA), a FEMA grantee, for damages resulting from severe storms, flooding, mudslides, and landslides, which occurred from March 29 to April 16, 2006. The award provided 75 percent FEMA funding for four large and eight small 2 projects.The audit covered the period from March 29, 2006, to October 12, 2012. We audited two large projects that incurred charges totaling $280, 112. We also performed a limited review of three small projects and two large projects to identify unused funds that should be put to better use (see Exhibit, Schedule of Audited Projects). As of the date of this report, Cal EMA had completed its review and FEMA was reviewing the Department's final claim.