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Audit finds documentation errors in aviation contracts; aviation and finance staff pledge automation and training
Summary
An audit of Austin Aviation contract management sampled 49 contracts and found documentation errors in 45; auditors recommended stronger review procedures, regular training, and technology automation. Aviation CEO said staffing and systems improvements are underway and Austin Financial Services said procurement-system modernization will include insurance-certificate management.
Lead auditor Christina Kern told the Audit & Finance Committee on Dec. 3 that an audit of Austin Aviation’s contract and vendor management identified a significant documentation problem: in a 49-contract sample, 45 contracts had documentation errors, commonly missing documents or expired insurance certificates.
"Our audit had 1 finding. We found that Austin Aviation's contract management process does not ensure that documentation is accurate," Kern said, and recommended that Austin Aviation strengthen its contract-administration practices by (1) ensuring another person reviews contract documentation, (2) holding regular trainings for staff on documenting and monitoring contracts, and (3) exploring technology to automate contract-management tasks.
Austin Aviation CEO Ghislaine Badawi thanked auditors and said aviation has recently added staff and procured program-controls consultants to provide construction oversight. She said construction contracts use a specialized industry platform (Procore) and that vendor insurance certificates are currently submitted by vendors by email and uploaded centrally by Austin Financial Services; the department will work with finance to improve uploads, training, and review.
James Scarborough of Austin Financial Services confirmed that certificates of insurance are centrally submitted to the finance department and said that automation of certificate management is part of a larger financial management procurement project intended to make contract documentation a single source of truth.
Why it matters: The audit highlights an operational control weakness that affects hundreds of airport contracts. Missing or inaccurate contract documentation (insurance, executive contracts, living-wage clauses) can hinder the city's ability to verify compliance and manage contractor obligations.
Action items and follow-up: Management agreed to the three recommendations; aviation and Austin Financial Services said they will explore automation options and training improvements and will coordinate with the city's financial-management-system project to reduce reliance on spreadsheets and disparate tools.
Sources: Office of City Auditor presentation and aviation/financial-services responses at the Audit & Finance Committee meeting, Dec. 3, 2025.
