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As part of our organization’s commitment to ensure the proper use of recovery funding, we performed a review of the City of Grand Prairie’s (City) operations to evaluate its capacity to administer the $3.2 million received under the Housing and Economic Recovery Act of 2008 and the American Recovery and Reinvestment Act of 2009 (Recovery Act). Specifically, our objective was to review and assess the City’s capacity and risks in the following areas: basic internal controls, financial operations, and procurement. Generally the City maintained capacity to administer its Recovery Act funding. We made recommendations regarding the potential favoritism and conflicts of interest, and the inclusion of ineligible expenses in Recovery Act programs. Also, the City needs to make some improvements to its HOME program and to its contracting and payment processes, and policies and procedures.