On August 24, 2014, a magnitude 6.0 earthquake struck northern California. FEMA expects eligible damages in Napa County, California (County), from the earthquake and aftershocks to exceed $6 million. We conducted this audit early in the grant process to identify areas where the County may need additional technical assistance or monitoring to ensure compliance with Federal requirements. The County has adequate policies, procedures, and business practices to account for Public Assistance grant funds according to Federal regulations and Federal Emergency Management Agency (FEMA) guidelines. The County can account for disaster costs on a project-by-project basis and is able to adequately support repair costs. Additionally, the County’s insurance procedures and practices are adequate to ensure that the County can properly manage anticipated insurance proceeds. The County also has adequate procurement policies and procedures that are consistent with Federal procurement standards. However, the County did not follow Federal procurement standards or its own contracting requirements when it awarded, without competition, a non-emergency grant management contract for $973,778. Therefore, we question $973,778 as ineligible contract costs.