Part C In addition to the above information, Sarah asks you to assume two other scenarios to see if the determination of major programs will change. First, the audit team is considering whether a joint project with the county should be considered a part of the audit of the city. Sarah wants to see howr the decision to include the joint project will impact the planning of the audit so that she can set the appropriate fees for the engagement. [f it is included as a part of the city audit, then Sagebrush City will have expended $12 million in federal assistance rather than the $80 million. Second, she wants you to again assess the grants, based on the original information (with $31] million] but with the assumption that Sagebrush City also receives an additional $25 million, for a total of $15 million of federal loan guarantees for housing projects. The loan guarantees are a separate program from the $T, transitional housing program mentioned earlier. Docmnent the basis for all your conclusions as the information will be used to set the audit fees and to plan the audit