We audited the State of Alabama, Department of Economic and Community Affairs' (State), Hurricane Katrina Community Development Block Grant Disaster Funds program (program), administered by the State's subrecipient, Mobile County Commission (Mobile). Our objective was to determine whether the State and Mobile administered the program in accordance with the requirements of the State's grant agreements (agreements). We initiated the audit as part of the Office of Inspector General Gulf Coast Region's audit plan and examination of activities related to Gulf Coast hurricane disaster relief efforts.

We found that in general, Mobile, as the State's subrecipient, met the requirements of its agreements when it usually ensured that program disbursements (1) were adequately supported and expended for only eligible expenses and (2) were not used for the same purpose as financial assistance provided by other sources.

Since the State ensured that Mobile properly administered its program in accordance with the requirements of its grant agreements, we did not recommend corrective action.