Out of 28 contracts auditors reviewed, they found about 82% of them were awarded without a documented assessment to justify the need to hire someone from outside.

AUSTIN, Texas — A new report from the city of Austin’s auditor office is finding major gaps in oversight on consulting contracts.

According to the report, from 2023 to 2025, the city spent $279 million on consulting services and annual expenditures increased by 25% during that time. 

Out of 28 contracts auditors reviewed, they found about 82% of them were awarded without a documented assessment to justify the need to hire someone from outside. A total of 71% of contracts were closed without evaluating contractor performance and in some cases, staff were unable to answer basic questions about their contracts. 

The audit report recommended that the city’s financial services department provide clearer guidance on how department’s should conduct needs assessments, work with the city manager’s office to make sure departments maintain all their records about contracts and perform consultant evaluations when contracts end.Â