FEMA Should Disallow $1.2 Million of $6.0 Million in Public Assistance Program Grant Funds Awarded to the City of San Diego, California

We audited $4 million of the $6 million of Federal Emergency Management Agency (FEMA) Public Assistance grant funds awarded to the City of San Diego, California (City), for damages resulting from heavy rainfall and flooding that occurred on December 17, 2010, through January 4, 2011. The City generally accounted for FEMA funds adequately, but did not always expend the funds according to Federal regulations and FEMA guidelines.