The Town of Jamestown, Colorado, (Town) received a $10.4 million Federal Emergency Management Agency (FEMA) grant award for damages resulting from severe storms, flooding, landslides, and mudslides that occurred in September 2013. We conducted this audit early in the grant process to identify areas where the Town may need additional technical assistance or monitoring to ensure compliance with Federal requirements. Most of the Town’s policies, procedures, and business practices are adequate to account for and expend Public Assistance grant funds according to Federal regulations and FEMA guidelines. The Town accounted for disaster-related costs on a project-by-project basis. The Town also has adequate procurement policies and procedures in place that are consistent with Federal procurement standards. Further, the Town’s insurance procedures and practices are adequate to ensure that the Town can properly manage anticipated insurance proceeds. Although the Town had adequate policies, procedures, and business practices, at the time of our audit, the Town lacked the personnel with the necessary financial expertise to perform financial management activities according to Federal standards.