Colorado Springs Utilities, Colorado (Utilities), received a $937,367 Public Assistance grant for damages from storms occurring May through June 2015. We conducted this audit early in the grant process to identify areas where the Utilities may need additional technical assistance or monitoring to ensure compliance with Federal requirements. The Utilities has established policies, procedures, and business practices to account for and expend Federal Emergency Management Agency (FEMA) Public Assistance grant funds according to Federal regulations and FEMA guidelines. Therefore, if the Utilities follow those policies, procedures, and business practices, FEMA has reasonable assurance that the Utilities will properly manage its FEMA grant.