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SCOPE AND METHODOLOGY
We performed the audit at the Authority in Newport News, Virginia, from May through October
2006. The audit was performed in accordance with generally accepted government auditing
standards and included tests of internal controls that we considered necessary.
The audit covered transactions representative of operations current at the time of the audit and
included the period January 2004 through April 2006. We expanded the scope of the audit as
necessary. During the audit, we assessed the reliability of computer-processed data relevant to
our audit by comparing it to hard-copy information. We found the computer-processed data
were sufficiently reliable to meet our audit objectives.
To accomplish our objectives, we
• Reviewed applicable regulations and guidance.
• Discussed operations with the Authority’s management and staff and key officials from
HUD’s Richmond, Virginia, field office.
• Reviewed the Authority’s internal control structure.
• Reviewed minutes of the Authority’s board of commissioners’ meetings.
• Nonstatistically selected eight contracts with values greater than $50,000 from 150
contracts that the Authority had in place with ending dates of September 30, 2005, or
later, as of May 2006, to review the Authority’s compliance with procurement
regulations.
• Nonstatistically selected 10 Line of Credit Control System drawdowns, valued at $4.5
million, to determine whether the drawdowns were adequately supported.
• Reviewed 10 low-income housing tenant files to verify tenant eligibility and the accuracy
of rent calculations and to determine whether inspections of the housing units were
completed as required.
• Reviewed the Authority’s audited financial statements for years 2004 and 2005 and other
financial records as appropriate.
• Reviewed the Authority’s interfund balances and notes payable.
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