We audited the State of Mississippi's (State) administration of the $5.058 billion in Community Development Block Grant (CDBG) disaster recovery funds provided to the State in the aftermath of Hurricane Katrina. The State allocated $2.2 billion to help homeowners in southern Mississippi recover from Hurricane Katrina. Our audit objective was to determine whether the State ensured that applicants were eligible to receive disbursements under Phase II of its Homeowner Assistance Program (Program). Except for a few minor issues related to documentation, the State generally ensured that applicants were eligible to receive disbursements under Phase II of the Program. Therefore, we did not have any findings or recommendations.