Our audit objective was to determine whether the City accounted for and expended FEMA grant funds according to Federal regulations and FEMA guidelines. The California Governor's Office of Emergency Services (Cal OES), a FEMA grantee, awarded the City $2,925,240 for costs resulting from severe storms, flooding, mudslides, and landslides from December 17,2005, through and including January 3, 2006. The award provided 75 percent FEMA funding for 7 large projects and 10 small projects. Our audit covered the period from December 17, 2005, to June 10, 2013. We audited $2,772,687, including six large projects totaling $2,599,005/ and two small projects totaling $173,682.