We have completed an audit of the Puerto Rico Public Housing Administration's (PHA) management of its central office procurement system. We conducted the audit in response to the Department of Housing and Urban Development (HUD) officials and our ongoing concerns regarding the Puerto Rico Public Housing Administration's financial management systems. Our audit objectives were to determine whether the PHA administered its activities in compliance with HUD requirements. We focused our audit to evaluate the PHA's procurement system. This report presents four findings that detail the PHA's need to improve its procurement operations.

Within 60 days, please give us a status report for each recommendation in the report on: (1) the corrective action taken; (2) the proposed corrective action and a planned implementation date; or (3) why action is not considered necessary.

Also, please furnish us copies of any correspondence or directives issued as a result of the audit. Should you or your staff have any questions please contact me or Sonya D. Lucas, Assistant District Inspector General for Audit, at (404) 331-3369. We are providing a copy of this report to the Puerto Rico Department of Housing and the PHA