Townsville City Council (TCC) breached Queensland regulations by directly appointing a contractor without calling for tenders, an external audit has found.

Under Queensland's Local Government Regulation 2012, a local government cannot enter a contract worth $200,000 or more in a financial year or over the term of the contract, without inviting written tenders first.

A Queensland Audit Office (QAO) report released on November 13 found that a council employee who recommended and approved the contract, based the recommendation on incorrect costings.

"The estimated total contract value was based on one year of expenditure only, despite the contract term being three years," the QAO wrote.

" The final contract amount also exceeded both the quoted amount and the approved recommendation to aw

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