documentary evidence as to why you selected the programs for audit. You must include sufficient detail about your decision process for inclusion or exclusion of the programs. Part A Sarah informs you that Sagebrush City has expended approximately $80 million in federal financial assistance each year. Current year expenditures include the following: (a) $3.7 million dollars for wastewater treatment, (b) $2.2 million for mass transit assistance, and (c) $760,000 for transitional housing. The wastewater treatment program has been audited in each of the last five years with no noted problems. The transit assistance program has been audited for the last several years. During last year's audit, HR&Y found two material weaknesses. Subsequent to the issue of the report, the process to obtain an understanding of internal controls suggests that both material weaknesses were alleviated through strengthened internal controls; there were no internal control problems noted in earlier audits of the transit assistance program. The transitional housing grant is new to Sagebrush City this year