We audited the Disaster Recovery Grants Reporting (DRGR) system to determine whether adequate controls were in place to safeguard and accurately track and report $1.93 billion in American Recovery and Reinvestment Act of 2009 (Recover Act) funds allocated to the Office of Community Planning and Development’s (CPD) Neighborhood Stabilization Program 2. We found that the improvements that CPD made to the DRGR system within the last year were beneficial to the overall assurance that the system’s data were properly maintained, safeguarded, and in compliance with Federal regulations. However, in order for HUD to address Recovery Act requirements for accurate data requirements, additional improvements should be made to the DRGR system. We recommend that CPD modify the DRGR system to improve its application controls. Also, the DRGR system owner needs to coordinate with the Office of the Chief Information Officer to ensure that the 1) security documentation is updated, 2) contingency plan is adequately tested, and 3) DRGR system is included in the annual disaster recovery test as it is a mission-critical application. OIG has determined that the computer security related contents of this report would not be appropriate for public disclosure and is releasing this redacted version to the public.