HUD OIG audited the 2004 Community Development Block Grant disaster recovery funds provided to the State of Florida (State). We selected this grant for review based on risk factors associated with fraud, waste and abuse.  HUD OIG's audit objectives were to determine whether the State (1) awarded and disbursed disaster recovery funds in accordance with HUD requirements and (2) implemented adequate procedures for monitoring the projects financed by the disaster recovery funds.  The State awarded and disbursed the 2004 Community Development Block Grant disaster recovery funds in accordance with HUD requirements. However, program files lacked evidence that the State verified whether recipients used disaster recovery funds for activities reimbursed by the Federal Emergency Management Agency, Small Business Administration, or other sources. This occurred because the State did not have adequate procedures to prevent possible duplicate disaster recovery payments to recipients. As a result, the opportunity existed for a recipient to receive funding for the same activity from several sources.   We recommend that HUD’s general deputy assistant secretary for community planning and development require the State to develop and implement procedures to ensure that Community Development Block Grant disaster recovery funds will not be used for activities reimbursed by the Federal Emergency Management Agency, Small Business Administration, or any other program or source and maintain supporting documentation in its files.