We audited the City of Pittsburgh’s (City) administration of its Community Development Block Grant (CDBG) funds that it received under the American Recovery and Reinvestment Act of 2009 (Recovery Act). We selected the City for audit because it received a $4.5 million grant, which was the third largest CDBG Recovery Act grant awarded in the State of Pennsylvania and it had disbursed more than half of the grant funds as of July 12, 2010. Our audit objective was to determine whether the City administered its street resurfacing and neighborhood business and economic development activities funded with Recovery Act funds according to the requirements of the Recovery Act and applicable U.S. Department of Housing and Urban Development (HUD) rules and regulations. We found although the City generally administered its street resurfacing and neighborhood business and economic development activities funded with Recovery Act funds according to the requirements of the Recovery Act and applicable HUD rules and regulations, it can improve its administration of the funds. The City (1) did not comply with HUD guidance for implementing the “buy American” provision of the Recovery Act, (2) could not demonstrate that jobs created in part by $400,000 in loaned funds benefitted or will benefit low- and moderate-income persons, (3) did not include a statement of work in its subrecipient agreement with the Urban Redevelopment Authority (Redevelopment Authority), and (4) did not accurately enter the number of jobs created or retained into the Federal reporting Web site. We recommended that HUD require the City to (1) develop and implement controls to ensure that a “buy American” provision is included in requests for applications or proposals, subrecipient agreements, bidding documents, and contracts funded with Recovery Act funds; (2) provide documentation to demonstrate that $400,000 loaned to two companies will comply with national objective criteria and benefit low- and moderate-income persons; (3) amend its subrecipient agreement with the Redevelopment Authority to include a specific description of the work to be performed, a schedule for completing the work, and a detailed budget; and (4) develop and implement controls to ensure that Recovery Act job creation data it enters into the Federal reporting Web site are accurate.