The details
Hollins said the audit plan will enhance financial accountability, work to optimize city resources and maximize taxpayer dollars.
The FY2025 audit plan will focus on:
- Performance audits to assess efficiency and effectiveness in city operations
- Compliance audits to ensure financial policies and regulations are followed
- Contract audits to scrutinize vendor agreements and spending
- Forensic audits to detect and prevent fraud, waste and abuse
- Cost recovery initiatives to reclaim potential revenue losses
“As the city’s financial watchdog, my job is to ensure every dollar works for Houstonians,” Hollins said in a March 13 news release. “This audit plan is more than a fiscal checkup—it’s a roadmap to smarter spending, greater efficiency and better city services. In a time of financial strain, we must proactively find solutions that set Houston on a path to long-term economic stability.”
A closer look
Jennifer Pierce, the deputy director at the Controller’s office, said during the March 17 Budget and Fiscal Affairs Committee meeting that the audit plan is looking at 37 audit projects in the plan.
Some of these projects include:
Contract compliance: 2023 water leak spending
In October 2023, City Council approved emergency spending of approximately $48 million towards a plan to continue addressing the water leak problem. The $48 million funding was to be split among 11 contractors, with each slated to perform $3 million to $12 million of work. The audit will review the billing between the 11 contractors and the city to ensure compliance with the contracted rates and timelines.
Contract compliance: solid waste services
The audit will identify cost recovery opportunities, future cost savings for current contracts and areas to leverage the city’s spending power for improved pricing terms in future contracts.
Talent recruitment
The audit will focus on optimizing recruitment efforts to enhance attracting and retaining talent citywide.
“This plan is essentially what needs to be done to mitigate risk, eliminate fraud, waste and abuse and hold management accountable,” Pierce said.
Hollins said his office will publish quarterly audit reports on its website, providing regular updates on findings, recommendations and corrective actions, as well as presenting these findings to the City Council at committee meetings.
What council members are saying
Some council members such as Edward Pollard questioned the difference between the Controller’s audit plan and the efficiency study by Ernst & Young conducted in 2024.
The report laid out the city’s spending habits and efficiency issues, including finding out that the city is currently operating with over 4,000 vacant positions, predominantly in the police, public works and fire departments.
Hollins said his office’s audit is independent and objective, while the Ernest and Young study is not an audit; rather it provides consulting services “at the pleasure of the administration.” He said while his office’s audit and the Ernst & Young study might overlap in some areas, the audit is just another resource that can be used to help address the city’s operational and financial challenges.
“Long-term fiscal health requires more than short-term or temporary funding sources,” Hollins said. “Through transparent oversight and best practices, we can help to safeguard taxpayer dollars by eliminating waste and maximizing efficiency—improving financial outcomes today while also investing in Houston’s future.”
