We audited the Scranton Housing Authority (Authority) based on a referral from our Office of Investigation. Our audit objective was to determine whether the Authority followed applicable procurement regulations and used U.S. Department of Housing and Urban Development (HUD) funds properly. The Authority did not purchase goods, services and property in accordance with applicable HUD requirements, the terms of its annual consolidated contributions contract, and its own procurement policy. It awarded contracts without competition, paid for services without having a contract, and lacked documentation to support expenditures totaling $923,000. In addition, the Authority could not support the source and use of $480,000 of funds invested with a broker and $801,000 transferred into and out of its nonfederal cash and investment accounts. We recommend that HUD require the Authority to provide supporting documentation or reimburse HUD or the applicable program from nonfederal sources for any amounts that it cannot support, develop and implement controls to ensure that it complies with applicable procurement, cash management and investment regulations, the terms of its annual consolidated contributions contract, and train applicable staff. We also recommend that the Authority create and maintain a detailed investment register and periodically reconcile its investments to it.