The objectives of the audit were to determine whether Iowa distributed, administered, and spent State Homeland Security Program grant funds strategically, effectively, and in compliance with laws, regulations, and guidance. We also addressed the extent to which funds awarded enhanced the ability of Iowa grantees to prevent, prepare for, protect against, and respond to natural disasters, acts of terrorism, and other manmade disasters. The Federal Emergency Management Agency (FEMA) awarded Iowa approximately $14.6 million in State Homeland Security Program grants during fiscal years 2010–12. Iowa does not have an urban area designated by FEMA; therefore, it did not receive Urban Areas Security Initiative grant funds during this period.