We audited Public Assistance grant funds awarded to New York City’s Department of Transportation (Department) in New York, New York (Public Assistance Identification Number 061-51000-51). Our audit objective was to determine whether the Department’s policies, procedures, and business practices were adequate to account for and expend Federal Emergency Management Agency (FEMA) grant funds according to Federal regulations and FEMA guidelines. We conducted this audit early in the Public Assistance process with the goal of identifying areas where the Department may need additional technical assistance or monitoring. In addition, proactively auditing grant recipients early in the grant cycle allows them the opportunity to correct non-compliance with Federal regulations before they spend the majority of their funding. It also allows them the opportunity to supplement deficient