Government
BY MICHAEL MILLIORN & BEN THOMPSON
Audit probes city consultant usage
Hays County to conduct water study Hays County o cials approved the rst countywide water study since 2011 in January. What’s happening The water study will combine updated data, ood assessments, infrastructure evaluations and resident input to help guide local o cials as they work to support growth and maintain sustainable water resources. Hays County’s population additions increased development pressure over the last decade, while the region faces water challenges like drought conditions and a possible moratorium on some new develop- ment with high water use. The HDR Engineers Inc. study will cost up to $542,360 with nal results expected after an 11-month period. Public updates are anticipated throughout the process.
Consultant spending Consulting services across city departments cost nearly $300 million in less than three years.
$120M $100M $80M $60M $40M $20M $0
$102.64M
$94.69M
$81.97M
A new city audit probed Austin’s frequent use of third-party contractors, including unclear justi ca- tions and reporting on work that recently cost nearly $300 million in less than three years. “The city may not be able to show why consultant services were needed or how they were used,” Audit Manager Keith Salas said. The overview Contracting with consultants is common in Austin, with Salas noting that “virtually all” city departments are spending on third-party support. The March audit, based on a sample of recent contracts, found the city typically didn’t evaluate whether to complete work internally; often didn’t fully document deliverables or complete per- formance evaluations; and sometimes accepted inaccurate or incomplete follow-up information.
*CITY FISCAL YEARS RUN FROM OCTOBER SEPTEMBER. FY 2024 25 DATA THROUGH JULY ONLY. SOURCE: CITY OF AUSTIN COMMUNITY IMPACT 2022-23 2023-24
2024-25*
The approach Salas said auditors determined the city’s nancial services o ce should set clearer guidance for departments to conduct needs assessments before seeking third-party help. They also proposed requiring performance evaluations for all contracts and better maintaining relevant documentation. The nance department agreed with the ndings and recommended xes, and plans to update its processes by October, according to the audit.
Austin to start recurring 3rd-party e ciency reviews Austin o cials authorized continuous third-party audits of citywide operations and services, a process partly prompted by a failed tax rate election. The gist
“We don’t know of any other city that’s doing it this way where it’s a systemic, citywide, ongoing, independent e ciency
The audit will analyze Austin’s government organization, public programs and services, third-party contracting practices, and nancial comparisons to peer cities. Public progress reports will be made at least semiannually, and all project recommendations, results and other information will be posted online. As improvements are suggested, city leaders will have to detail how changes will be made.
assessment or audit. And never before has Austin done this.” KIRK WATSON, MAYOR
The city auditor’s o ce is now tasked with start- ing up and overseeing the ongoing “comprehensive e ciency assessment” program, to be handled independently by an external consultant.
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