Even programs involving relatively subjective judgments can readily be audited

A Department of Housing and Urban Development (HUD) program is aimed at conserving and rehabilitating blighted but salvageable urban areas. One element of the program provides that HUD will make rehabilitation grants and low-interest loans to property owners to help them finance the repairs needed to bring their properties into compliance with housing codes.,When Congress authorized the program, it did not establish specific criteria as to what constitutes a “blighted but salvageable” area; it left that up to HUD.

A preliminary survey by the GAO has indicated that HUD is directing funds to areas that were far too deteriorated for conservation and rehabilitation to work.

Suppose that you are assigned to the engagement. Outline an approach that you would take to support (or reject) the findings of the preliminary survey.