DEPARTMENT: Finance
FILE TYPE: Consent Action
TITLE
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Authorization To Execute Contract With CliftonLarsonAllen LLP For Auditing Services
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RESOLUTION
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WHEREAS, in 2015 the Minnesota State legislature enacted a law, Minn. Stat. § 6.481, allowing all counties to contract with a private accounting firm to perform annual financial audits, rather than using the Minnesota State Auditor’s office; and
WHEREAS, Dakota County issued a request for proposal to select a certified public accounting firm for auditing services; and
WHEREAS, Dakota County has been satisfied with the prior audit services provided by CliftonLarsonAllen LLP for audit years 2017 through 2025; and
WHEREAS, staff recommends executing a contract with CliftonLarsonAllen LLP based on the firm’s experience with Minnesota counties and other local governments similar in size to Dakota County, its technical qualifications and breadth and cost of its proposed services.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Deputy County Manager to execute the contract with CliftonLarsonAllen LLP in the amount of $375,750 for the audit years 2026, 2027, and 2028, subject to approval as to form by the County Attorney’s Office.
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BACKGROUND
During the 2015 Minnesota State legislative session, the legislature enacted a law, Minn. Stat. § 6.481, authorizing counties to obtain annual auditing services from a private audit firm. This law allows counties to work directly with a private firm without obtaining a specific release from the Office of the State Auditor. The statute went into effect on August 1, 2016, at which time Dakota County notified the State Auditor of its intent to work with a private firm versus the State Auditor’s Office for financial audits.
After a thorough Request for Proposals (RFP) process, the County selected CliftonLarsonAllen LLP (CLA) to conduct the County’s annual audit services starting with the December 31, 2017, audit.
Since then, CLA has completed the County’s annual audits for audit years 2017 through 2025, and County staff have been satisfied with the quality of the services. CLA has an in-depth understanding of the County’s procedures, controls, and risks. They also have provided resources, training, and templates to help address several challenges that have occurred during the noted time.
CLA performs the largest number of single audits in the United States. CLA also performs the most audits of Minnesota counties, other than the State Auditor’s Office. This includes the audits of all the metropolitan area counties, except for Ramsey County and Anoka County, which are still audited by the Office of the State Auditor.
The total audit fees associated with the 2024 and 2025 audits were $118,000 and $121,275, respectively.
In the fall of 2026, the finance department issued an RFP on the County’s website and initiated calls and emails to eight regional and local firms. Responses were received from CLA, BakerTilly, BerganKDV, and RSM. A team of six staff rated them based on the scope of the proposed services and audit approach, presentation, technical qualifications, experience with similar local governments, and costs. Two firms were selected for interviews to further assess their experience and qualifications.
Staff selected CLA as the recommended firm based on depth of experience with Minnesota counties and other governmental clients similar in size to Dakota County, history of engagements with government clients that also receive the Government Finance Officers Association Certificate Award, extensive single audit experience and resources, and competitive pricing based on the number of hours and breadth of services proposed.
The proposal from CLA includes a total cost of $375,750 for three fiscal years ending 2026, 2027 and 2028, with each fiscal year’s audit fees proposed to cost $121,500, $125,250, and $129,000, respectively.
RECOMMENDATION
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Based on the firm’s experience with Minnesota counties and other local governments similar in size to Dakota County, its technical qualifications and breadth and cost of its proposed services, staff recommends that the Board authorize the Deputy County Manager to execute the contract with CliftonLarsonAllen LLP in the amount of $375,750 for the audit years 2026, 2027, and 2028.
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FINANCIAL AND STAFFING IMPACTS
The costs of the audits are budgeted annually and are already included in the County Manager’s recommended 2027 budget as part of the Finance Department budget, funded by property tax levy. Total costs over the three years will not exceed $375,750, and the fees associated with 2026 year-end audit services to be provided in 2027 are being held flat from 2026 fees.
PREVIOUS BOARD ACTION
25-370; 8/12/25
ATTACHMENTS
Attachment: RBA Contract Summary Sheet - Audit Services
CONTACTS
Department Director: Will Wallo
Author: Lucas Chase