The objectives of the State audits were to determine whether each State distributed and spent the grant funds (1) effectively and efficiently, and (2) in ompliance with applicable Federal laws and regulations. We also addressed the extent to which grant funds enhanced the States’ ability to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The audits included more than $924 million in State Homeland Security Program and Urban Areas Security Initiative grants awarded to the 16 States and territories during 3-year periods between fiscal years 2006 and 2010.