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In accordance with our goal to review funds provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act), the U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General conducted a capacity review of the City of East Cleveland’s (City) operations. We also selected the City based upon the results of our audit of the City’s Community Development Block Grant (Block Grant) and HOME Investment Partnerships (HOME) programs (see OIG audit report #2009-CH-1008, issued May 11, 2009). Our objective was to determine whether there was evidence to indicate that the City lacked the capacity to adequately administer its Recovery Act funding. Based upon our review, we determined that the City had sufficient capacity to effectively and efficiently administer its Recovery Act Block Grant program. This determination does not reflect a finding of sufficient capacity to administer its regular Block Grant, HOME, or Neighborhood Stabilization programs.