"Many of the money orders raise questions about the validity of the underlying contribution," the auditors, who were from the Campaign Finance Board, would later write.

Grant Tensor also violated "various covenants of certain current indebtedness" that, the company's auditors wrote, "raise substantial doubt" about its ability to stay in business.

"The management of the District Enterprise of Home Trade did not outline the rules for assessing the transferred property," the auditors wrote.

"As a result," auditors wrote, "HUD was deprived of the use of these funds."

The auditors wrote that managers were only "informally involved in the day-to-day work of subordinates."

The auditors wrote that those problems developed even though the contract specified "performance requirements" that were less stringent than those originally envisioned by the Seals.

"Therefore, it is possible that potential adopters may be discouraged by the unclean conditions," the auditors wrote, noting that several filthy cages were also observed.

Although auditors wrote to the directors of the troubled bank about questionable transactions, weeks later they signed the bank's annual report for 1989.

"The premium processing program has adversely affected the time required to adjudicate routine applications and petitions," the auditors wrote.

"The company's recurring losses and negative cash flow from operations raise substantial doubt about its ability to continue as a going concern," the auditors wrote in their 1992 report.