CITY AUDITOR.

Austin City Code tit. 2, ch. 2-3

in effect

Austin City Code § 2-3-1 APPOINTMENT.

§ 2-3-1 - APPOINTMENT. (A) The office of the city auditor is created under Section 17 (City Auditor) of Article VII (Finance) of the Charter. A majority of the council shall appoint a city auditor in accordance with the procedure established in Section 2-3-2 (Selection Process; City Auditor Vacancy). (B) The council may not appoint as city auditor a person who: (1) has served as the City's mayor, a council member, or city manager within five years before the date of the appointment; or (2) is related, by affinity or consanguinity within the second degree, to the mayor, a council member, or the city manager. (C) The council shall provide the city auditor with a discrete budget sufficient to perform the auditor's responsibilities and duties under this chapter. (D) A majority vote of the members of the council is required to remove the city auditor as provided by Section 17 (City Auditor) of Article VII (Finance) of the City Charter. Source: 1992 Code Sections 2-8-1(A), and 2-8-2(A), (C), and (J); Ord. 031204-9; Ord. 031211-11.

Austin City Code § 2-3-2 SELECTION PROCESS; CITY AUDITOR VACANCY.

§ 2-3-2 - SELECTION PROCESS; CITY AUDITOR VACANCY. (A) The members of the council audit and finance committee shall serve as a nominating committee to recommend candidates for city auditor. The chair and vice chair of the council audit and finance committee will hold the same positions on the nominating committee. The nominating committee may seek advice from individuals with audit expertise. (B) Not later than the 90th day after the city auditor position is vacated, the nominating committee shall recommend to the council three candidates selected by a majority of the committee members. (C) Not later than the 30th day after the council receives the nominating committee's recommendation, the council shall select a city auditor from the recommended candidates. (D) If the city auditor's position is vacated, the auditor's first assistant shall serve as acting city auditor during the vacancy. Source: 1992 Code Section 2-8-8; Ord. 031204-9; Ord. 031211-11; Ord. No. 20150129-026, Pt. 8, 2-9-15; Ord. No. 20240215-034, Pt. 3, 2-26-24.

Austin City Code § 2-3-3 QUALIFICATIONS FOR CITY AUDITOR.

§ 2-3-3 - QUALIFICATIONS FOR CITY AUDITOR. The city auditor must: (1) be knowledgeable in performance and financial auditing, public administration, and public financial and fiscal practices; (2) be licensed as a certified public accountant or certified internal auditor; and (3) exercise due professional care in carrying out the auditor's duties, and ensure that due professional care is employed to conduct an audit. Source: 1992 Code Section 2-8-1(B); Ord. 031204-9; Ord. 031211-11.

Austin City Code § 2-3-4 INDEPENDENCE, OBJECTIVITY, AND AUDIT STANDARDS.

§ 2-3-4 - INDEPENDENCE, OBJECTIVITY, AND AUDIT STANDARDS. (A) The city auditor shall organize and administer the auditor's office to operate without interference or influence that might adversely affect an independent and objective judgment of the auditor. (B) The city auditor: (1) shall organize the city auditor's office as necessary to perform the city auditor's responsibilities and duties under this chapter; (2) may not be actively involved in a campaign for a City elective office; (3) may not conduct or supervise or allow an employee to conduct or supervise an audit of an activity for which the person was responsible or in which the person was employed during the two years before the date of the audit; (4) shall follow: (a) government auditing standards established by the Comptroller General of the United States to conduct the city auditor's work and be independent as defined by the standards; and (b) accepted industry standards to conduct investigative work such as the general and qualitative standards under the "Quality Standards for Investigations" established by the Council of the Inspectors General on Integrity and Efficiency; and (5) is responsible for selection of an audit area and may consider requests from council and the city manager in selecting an audit area. Source: 1992 Code Section 2-8-2(B) and (D) through (G); Ord. 031204-9; Ord. 031211-11; Ord. No. 20170209-005, Pt. 1, 2-20-17.

Austin City Code § 2-3-5 POWERS AND DUTIES.

§ 2-3-5 - POWERS AND DUTIES. (A) In this section: (1) ABUSE means the use of a City office, employment, contract, or other position with the City to obtain personal gain or favor for the City official or employee or another person from a citizen or other City employee or vendor. (2) FRAUD includes, but is not limited to: (a) the unauthorized use of a City resource for personal gain by deception, including by forgery or by altering a document; (b) the misappropriation of funds, supplies, or other City resources, through methods including, but not limited to theft, embezzlement, or misrepresentation; (c) the intentional improper handling of or reporting of money or a financial transaction; (d) the intentional improper destruction or removal of records or other City resources; or (e) the use of official City information for personal benefit. (3) WASTE means: (a) the grossly inefficient or uneconomical use of a City asset or resource; or (b) the unnecessary incurring of costs to the City as a result of a grossly inefficient practice, system, or control. (4) PERSONAL BENEFIT means anything reasonably regarded as economic gain or advantage, including benefit to another person in whose welfare the beneficiary is interested. (B) The city auditor shall examine City operations to identify an opportunity to reduce costs, increase efficiency, quality, and effectiveness, or otherwise improve management of a City function, program, service, or policy. (C) The city auditor shall communicate directly with the council audit and finance committee and the council, attend council audit and finance committee meetings, and regularly meet with council members. (D) The city auditor shall establish audit policies and procedures consistent with government auditing standards established by the Comptroller General of the United States, and applicable law and regulation. (E) The city auditor may conduct a performance or financial-related audit, investigation, and other work to determine if: (1) a current City function, program, service, or policy: (a) is authorized by the council or other legal authority; and (b) is conducted to accomplish its intended objective; (2) a function, program, service, or policy is effective in achieving its stated or intended result or benefit, including the level of effectiveness; (3) an audited function, program, service, or policy effectively, economically, and efficiently acquires, protects, and uses its resources, including personnel, property, and space; (4) a function, program, service, or policy complies with a mandate regarding efficiency, economy, effectiveness, or expenditure of public funds adopted by council or other legal authority; (5) management for a function, program, service, or policy has adopted an administrative and accounting control system to effectively, economically, and efficiently carry on the function or program; and (6) a function, program, service, or policy is providing financial and performance reports that accurately, fully, and fairly disclose all information required by law or other criteria necessary to: (a) ascertain the nature and scope of the function, program, service, or policy; and (b) establish a proper basis for evaluating the results of the function, program, service, or policy. (F) When required or implied by audit objectives, the city auditor shall determine the cause of an inefficient, uneconomical, or ineffective function, program, service, or policy. (G) The city manager shall provide an update on the status of all audit recommendations to the city auditor at least twice a year. The city auditor may conduct a follow-up review to verify a report or plan from the city manager in response to an audit recommendation. (H) If the city auditor determines that a City employee or official may have violated the law, or may be reasonably anticipated to commit a violation, the city auditor shall: (1) consult with and obtain advice from the city attorney; (2) promptly report the suspected violation to the appropriate authority; and (3) if the suspected violation is criminal, notify the appropriate chief prosecuting authority. (I) The city auditor may hire a certified or registered public accountant, qualified management consultant, or other professional expert necessary to perform the city auditor's duties, in compliance with the City's procurement requirements. (J) The city auditor shall manage a reporting system through which a City employee or a member of the public may submit an allegation of wrongdoing. The person making an allegation is not required to provide the person's name. An allegation may include an allegation of: (1) fraud, waste, or abuse; (2) a violation of personnel policy; or (3) a violation of law, including a violation of City Code Chapter 2-7 (Ethics and Financial Disclosure). (K) In response to a subpoena or request for investigative materials from a City board, commission, task force, or similar body, the city auditor shall not disclose any information that qualifies as an audit working paper under the Public Information Act (Chapter 552, Texas Government Code), including information that identifies any informant or witness. (L) If the city auditor receives an allegation of a violation of City Code Chapter 2-7, Article 4 (Code of Ethics) by a member of the city council or their direct staff; a person appointed by the city council pursuant to the City Charter; or a person appointed by the city council to a City board, task force, or similar body, and finds that the allegation merits an investigation the city auditor shall: (1) hire an external party to investigate the allegation if the alleged violation is by a member of the city council or their direct staff or a person appointed by the city council pursuant to the City Charter; and (2) submit the results of a substantiated investigation to the Ethics Review Commission by filing a sworn complaint with the commission under City Code Section 2-7-41 (Complaints). (a) Not later than the fifth working day prior to filing the complaint with the Ethics Review Commission, the city auditor shall send a written notice to the person who is the subject of the investigation and to any person mentioned or referenced as being involved in the alleged inappropriate conduct informing the person that the city auditor intends to file a complaint with the commission. (b) The Ethics Review Commission shall make the final determination on the allegation. (M) If the city auditor investigates an allegation of a violation of City Code Chapter 2-7, Article 4 (Code of Ethics) by a City official or employee not listed in Subsection (L), and who is neither a member of the City's classified municipal civil service system nor of a state civil service system, the city auditor shall prepare a draft investigative report of a substantiated investigation. The draft report shall include any information tending to negate guilt or mitigate the seriousness of the offense. (1) The city auditor shall deliver the draft investigative report to the person who is the subject of the investigation and any person mentioned or referenced as being involved in the alleged inappropriate conduct. The person who is the subject of the investigation or a person mentioned or referenced as being involved in the alleged inappropriate conduct may submit to the city auditor a written response to the draft report by the 20th working day after the person receives the report. (2) The city auditor shall include any written responses received, and deliver the draft report to the city manager. The city manager shall provide written comment on the draft investigative report, including any action that has occurred in response to findings in the draft investigation report by the 10th working day after the city manager receives the report. (3) The city auditor shall include any written comment received from the city manager, and finalize the report. (4) The city auditor shall, pursuant to standard reporting procedures, deliver the report to city council. (N) The city auditor may conduct an investigation of an allegation of a violation of law or policy by a City employee who is a member of the classified municipal civil service system or of a state civil service system. (1) The city auditor must conduct an investigation of an employee covered by a civil service system in a manner that is consistent with the applicable law and with an applicable labor agreement. (2) The following provisions apply to an investigation under this subsection: (a) If the city auditor obtains sufficient evidence to indicate that a violation has occurred, the city auditor shall provide a copy of the results of an investigation under this section to the city manager or other appropriate authority. (b) The city manager or appropriate authority may conduct a separate investigation. The city manager or appropriate authority has the authority to determine that a violation has occurred and to take appropriate disciplinary actions. (c) For each investigation in which the city auditor obtains sufficient evidence that a violation has occurred, the city auditor shall prepare a draft investigative report and deliver the draft report to the person who is the subject of the investigation and a person mentioned or referenced as being involved in the alleged inappropriate conduct. (d) The person who is the subject of the investigation and a person mentioned or referenced as being involved in the alleged inappropriate conduct may submit a written response to the draft report by the 20th working day after the date the person receives the report. (e) The city auditor shall deliver a copy of the final report, including a response submitted, to the appropriate authority, the person who is the subject of the investigation, a person mentioned or referenced as being involved in the alleged inappropriate conduct, the council, and the city manager. (f) The city auditor shall retain a copy of the report in the city auditor's office for the applicable retention period under the City's records management program. (O) A person who is the subject of an investigation by the city auditor may bring a representative or advisor of the person's choice to an interview with the city auditor. (P) The city auditor shall refer an allegation enumerated in this subsection to the city manager. The city manager shall design a process to inform the city auditor of the disposition of the referred allegations for recordkeeping purposes. The allegations covered by this subsection are those related to: (1) a personnel issue; (2) an operational issue; (3) a de minimis fraud, waste, or abuse violation; (4) a public safety issue that is not related to fraud, waste, or abuse; (5) an issue that the city auditor is not authorized to investigate and that is not within the jurisdiction of the Ethics Review Commission; and (6) a secondary employment matter that the city auditor determines does not interfere with or impede the job performance or productivity of a City official or employee; does not interfere with or impede the City's conduct of official business; and is too small, minor, or insignificant to have an economic impact on City operations. (Q) City officials and employees shall cooperate with city auditor audits, investigations, and any other work specified in this section. (R) The city auditor shall distribute the results of an audit in accordance with City Code Section 2-3-8 (Report Preparation and Release). (S) The city manager shall produce a report on the status of investigations conducted by the city manager at least once per year to the council audit and finance committee. Source: 1992 Code Sections 2-8-1(B)(3), 2-8-3(B), and 2-8-6; Ord. 031204-9; Ord. 031211-11; Ord. No. 20170209-005, Pt. 2, 2-20-17; Ord. No. 20190328-037, Pt. 1, 4-8-19; Ord. No. 20201029-029, Pt. 1, 11-9-20; Ord. No. 20240215-034, Pt. 4, 2-26-24; Ord. No. 20260226-050, Pt. 4, 3-9-26.

Austin City Code § 2-3-6 EMPLOYEES.

§ 2-3-6 - EMPLOYEES. (A) Except the city auditor and an assistant otherwise designated by the city auditor, an appointee or employee of the city auditor's office is in the City's classified personnel service. (B) The city auditor has the authority to appoint, employ, and terminate an assistant or other personnel as necessary to operate the city auditor's office, independently of the direction of the city manager or the council, subject to the budget approval process and personnel policy established by the council for each City department. (C) The city manager or council may not direct the city auditor to appoint, employ, or terminate an assistant city auditor or other auditor's office personnel, subject to the City's grievance procedure. Source: 1992 Code Sections 2-8-2(H) and (I); Ord. 031204-9; Ord. 031211-11.

Austin City Code § 2-3-7 ANNUAL AUDIT PLAN.

§ 2-3-7 - ANNUAL AUDIT PLAN. (A) The city auditor shall submit an annual audit plan to the council for review and comment through the council audit and finance committee. (B) An annual audit plan under this section shall identify the scope of each audit the city auditor intends to conduct, including: (1) the department, organization, service, program, function, or policy to be audited; and (2) each potential audit objective to be addressed. (C) If the city auditor notifies the council audit and finance committee and obtains comments from the committee, an annual audit plan may be amended by the city auditor. The city auditor may request an amendment independently, or at the request of the council audit and finance committee or the city manager. (D) The city auditor may initiate, conduct, or expand the scope of an audit or investigation if the city auditor determines that: (1) fraud, waste, or abuse, as defined in Section 2-3-5 (Powers and Duties) may have occurred or is occurring; or (2) illegality may have occurred or is occurring; or (3) an audit finding requires expansion of the scope of an audit or investigation in progress. Source: 1992 Code Section 2-8-2(G)(1) through (3); Ord. 031204-9; Ord. 031211-11; Ord. No. 20170209-005, Pt. 3, 2-20-17; Ord. No. 20240215-034, Pt. 5, 2-26-24.

Austin City Code § 2-3-8 REPORT PREPARATION AND RELEASE.

§ 2-3-8 - REPORT PREPARATION AND RELEASE. (A) The city auditor shall prepare a draft audit report for each audit and deliver the report to the city manager. (B) The city manager shall send the city auditor written comment on the reported audit findings and a written response to each recommendation on or before a date agreed to by the city manager and the city auditor. The city manager's response shall: (1) state whether the city manager agrees or disagrees with each recommendation; (2) include the reason for a disagreement; and (3) describe the action and timeframe, if any, that will occur in response to a recommendation. (C) If the city manager's response is timely delivered to the city auditor, the city auditor shall include a copy of the response in the city auditor's final report. (D) The city auditor shall provide a copy of the audit report to the Austin History Center for retention as a permanent record. (E) The city auditor shall communicate the final audit report publicly by: (1) posting on a website or via other electronic means; (2) providing a hard copy upon request; and (3) providing a summary to the council audit and finance committee. (F) An audit report prepared under this section shall adhere to the reporting standards for financial-related and performance audits prescribed by government audit standards established by the Comptroller General of the United States. Any adjustments to a final report will follow the requirements in those government auditing standards. (G) The city auditor may issue other reports to provide information to the city manager and council. (H) The city auditor shall prepare a summary of the reporting program's activities at least twice a year for presentation to the council audit and finance committee. Source: 1992 Code Section 2-8-5; Ord. 031204-9; Ord. 031211-11; Ord. No. 20170209-005, Pt. 4, 2-20-17; Ord. No. 20240215-034, Pt. 6, 2-26-24.

Austin City Code § 2-3-9 COMPREHENSIVE EFFICIENCY ASSESSMENT PROGRAM.

§ 2-3-9 - COMPREHENSIVE EFFICIENCY ASSESSMENT PROGRAM. (A) The city auditor shall initiate and oversee a program of recurring comprehensive efficiency assessments designed to address cost effective performance improvements of all other City departments on a repeating schedule with at least three years between assessment cycles. (B) The city auditor shall establish an ongoing means for employees to submit suggestions for review or operational improvement. (C) The city auditor shall contract with an external consultant with expertise in municipal audits and collaborate with the consultant to perform each comprehensive efficiency assessment. (D) Each comprehensive efficiency assessment shall include: (1) analysis of the efficiency of City operations, management structure, functions, programs, services, and policies, including a cost-benefit analysis where appropriate; (2) analysis of City contracting practices and opportunities for increased efficiency; (3) determination of whether City contractors are meeting uniform standards for performance metrics, documentation of required deliverables, and accounting of expenditures; (4) identification of and recommendations for cost savings and performance enhancements within City departments; (5) analysis of efforts toward continuous improvement and managing organizational change; and (6) efficiency and financial benchmarking with peer cities, where applicable. (E) The city manager, city clerk or municipal court clerk overseeing the department that has been assessed shall provide a response detailing any objections to recommendations that the council should consider, or a concurrence and timeline for execution of the recommendations. (F) The city manager and all employees shall cooperate with the city auditor and external consultant on all requirements of this section. (G) The city auditor shall report on the status, including progress and any results, of each comprehensive efficiency assessment to the audit and finance committee semi-annually or as requested, and to the council annually or as requested and shall conduct follow-up review of any portion of the comprehensive efficiency assessment as requested by the audit and finance committee. (H) The city auditor shall notify the council if recommendations include significant departmental reorganizations, reductions in force, or outsourcing of City services. (I) The city auditor shall report on any new efficiencies within the Austin City Auditor's Office during any report made under Subsection (G). (J) The city auditor shall post the plan and proposed schedule for a comprehensive efficiency assessment as well as related information, results, recommendations, and implementation progress on the City website. (K) No portion of this section is intended to interfere with the consistent and timely delivery of City services or to limit the authority of the city manager to initiate and implement practices that increase efficiency within City departments. (L) Amendments to, or repeal of, this section may only be adopted by the favorable vote of at least nine council members. Source: Ord. No. 20260226-050, Pt. 2, 3-9-26.

Austin City Code § 2-3-10 COUNCIL AUDIT AND FINANCE COMMITTEE.

§ 2-3-10 - COUNCIL AUDIT AND FINANCE COMMITTEE. (A) The council audit and finance committee shall assist the council in oversight of and responsibility for the City's financial and performance reporting practices, internal controls, compliance with applicable law and regulation, and initiatives to improve service. (B) The committee shall: (1) review and make a recommendation to the full council regarding the city auditor's annual audit plan; (2) monitor the city auditor's audit results and follow-up activity; (3) monitor the City's internal controls through external audits and the city auditor's audits and other activity; (4) provide reasonable assurance to the council that the City is in compliance with applicable law and regulation, is conducting its affairs ethically, and is maintaining effective internal controls against a conflict of interest or fraud; (5) meet with the director of the Finance and Administrative Services Department on financial questions and to review: (a) the City's financial reports, including a comparison between actual financial performance and the approved budget; (b) the City's fiscal policy, internal control policy, investment policy, debt management policy, and other financial management policies; and (c) the status of the capital improvement program and related projects; (6) recommend to the full council an external auditor to conduct the City's annual financial audit; and (7) meet with the external auditor approved by the council as necessary, and review financial statements, auditors' opinion, and management letters resulting from the City's annual financial audit. Source: 1992 Code Section 2-8-3; Ord. 031204-9; Ord. 031211-11; Ord. 20060824-060; Ord. 20090806-032; Ord. No. 20150129-026, Pt. 5, 2-9-15; Ord. No. 20260226-050, Pt. 2, 3-9-26.

Austin City Code § 2-3-11 PEER REVIEW.

§ 2-3-11 - PEER REVIEW. (A) The city auditor must obtain an external peer review in accordance with the government auditing standards established by the Comptroller General of the United States. (B) The city auditor shall provide a copy of the final peer review report to each member of the council and make a copy of the final report publicly available. (C) The city auditor shall pay the cost of the peer review from the city auditor's budget. Source: 1992 Code Section 2-8-7; Ord. 031204-9; Ord. 031211-11; Ord. No. 20240215-034, Pt. 7, 2-26-24; Ord. No. 20260226-050, Pt. 2, 3-9-26.

Austin City Code § 2-3-12 ACCESS TO RECORDS AND PROPERTY.

§ 2-3-12 - ACCESS TO RECORDS AND PROPERTY. (A) Each City officer and employee shall provide the city auditor with free and open access to and furnish copies of all information in any medium. (B) Each City officer and employee shall provide the city auditor with free and open access to all property, equipment, facilities, and operations for inspection or observation. Source: 1992 Code Section 2-8-4; Ord. 031204-9; Ord. 031211-11; Ord. No. 20240215-034, Pt. 8, 2-26-24; Ord. No. 20260226-050, Pt. 2, 3-9-26.

Source: City of Austin, City Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/austin/codes/code_of_ordinances?nodeId=TIT2AD_CH2-3CIAUFetched: 10/27/2026