The City of Longmont, Colorado (City), needs additional assistance from the Colorado Division of Homeland Security and Emergency Management (Colorado) and the Federal Emergency Management Agency (FEMA) to provide reasonable assurance that it properly manages its $55.1 million FEMA grant. We identified weaknesses in the City’s policies, procedures, and business practices for procurement, insurance, and accounting that place the City in jeopardy of losing its Federal funding. The City received a $55.1 million Public Assistance award for damages from a September 2013 flood. 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.