This report presents the results of a non-Federal financial audit of the Rural Water Systems and Environmental Sanitation Project, USAID/Peru Project No. 527-022 1, managed by the Government of Peru's Ministry of Health (Ministry), for the period September 25, 1980 to June 30, 1989. The accounting firm of Moores & Rowland International prepared the report, which is dated June 25, 1991. The purpose of the Project was to provide water systems, latrines, and health education to 1,200 communities having a population of less than 500 inhabitants and located in Peru's mountains and high jungle regions. The audit coverage included $7,448,383 provided by A.I.D. to the Ministry to implement the Project.