The objectives of the audit were to determine whether the Commonwealth of Virginia distributed and spent State Homeland Security Program and Urban Areas Security Initiative grant funds (1) effectively and efficiently and (2) in compliance with applicable Federal laws and regulations. We also addressed the extent to which grant funds enhanced the Commonwealth’s ability to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The audit included a review of $90 million in State Homeland Security Program and Urban Areas Security Initiative grants awarded to the Commonwealth during fiscal years 2008 through 2010.