We determined that the City followed Federal regulations and FEMA guidelines when accounting for FEMA funds; however, FEMA mistakenly obligated $587,538 of ineligible funding because of a mathematical error.  We made two recommendations to the Regional Administrator, FEMA Region IV, to disallow $587,538 as ineligible costs.  FEMA agreed with our finding and recommendations, and has taken corrective action to resolve both recommendations.  Therefore, we consider these recommendations resolved and closed with no further action required from FEMA.