The objectives of the audit were to determine whether the Puerto Rico Department of Education (Puerto Rico): (1) submitted complete, accurate, and reliable Adult Education program performance data to the U.S. Department of Education (Department); (2) ensured that Adult Education program funds were used in accordance with applicable Federal and State laws and regulations; and (3) awarded subgrants competitively to eligible local service providers in accordance with applicable Federal and State laws and regulations. The audit covered program year (PY) 2012-2013, July 1, 2012, through June 30, 2013. Puerto Rico can improve its oversight of the Adult Education program to ensure that it: (1) submits complete, supported, and accurate performance data to the Department; (2) uses funds in compliance with applicable laws and regulations; and (3) obtains and reviews single audit reports of subgrantees. This report highlights the audit findings and provides recommendations to the Assistant Secretary for the Office of Career, Technical, and Adult Education regarding requirements for Puerto Rico.