DOWN THE DRAIN? Federal housing authorities are auditing the use of more than $650 million in grants designated for sewage and water systems across south Mississippi in the wake of Hurricane Katrina.

WASTE TREATMENT: In June, an AP investigation found that officials implementing the plan in one county spent millions of federal dollars on sewage plants and water tanks that may not be needed for decades, based on projections of huge growth in many areas.

MURKY WATERS: The audit could simply lead to recommendations for the future, or it could lead to criminal investigations.