On August 24, 2014, a magnitude 6.0 earthquake struck northern California. FEMA expects eligible damages in the City of Napa, California (City) from the earthquake and aftershocks to exceed $8 million. We conducted this audit early in the grant process to identify areas where the City may need additional technical assistance or monitoring to ensure compliance with Federal requirements. The City has adequate policies, procedures, and business practices to account for Public Assistance grant funds according to Federal regulations and FEMA guidelines. The City can account for disaster costs on a project-by-project basis and is able to support disaster-related costs adequately. Additionally, the City’s insurance procedures and practices are adequate to assure FEMA that the City can properly manage anticipated insurance proceeds and obtain and maintain insurance to mitigate the cost of future damages.