We audited the City of Bethlehem's (City) Community Development Block Grant (CDBG) program as a result of a citizen complaint. Our audit objective was to determine whether the City administered its CDBG program in compliance with U.S. Department of Housing and Urban Development (HUD) requirements. We focused our review on whether the City (1) had adequate internal controls over its management process, accounting, and data processing; (2) used CDBG program funds for eligible activities; (3) used CDBG funds to meet the program's national objectives; and (4) properly accounted for CDBG program income. We concluded that the City generally administered its CDBG program in compliance with HUD requirements.