The Gulf Coast Mental Health Center (Center) received an award of $2.1 million from the Mississippi Emergency Management Agency, a Federal Emergency Management Agency (FEMA) grantee, for damages resulting from Hurricane Katrina, which occurred in August 2005. Our audit objective was to determine whether the Center accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines. The Center generally accounted for and expended FEMA funds according to Federal regulations and FEMA guidelines. However, we identified $61,200 of duplicate benefits for costs recoverable from another source. This amount represented about 4 percent of the $1.4 million we reviewed for five projects.