DEPARTMENT: Finance
FILE TYPE: Consent Action
TITLE
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Authorization To Amend Contract With CliftonLarsonAllen, LLP For Auditing Services
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PURPOSE/ACTION REQUESTED
Authorize the Deputy County Manager to execute a contract amendment increasing the contract total with CliftonLarsonAllen, LLP for professional auditing services.
SUMMARY
In 2016, Dakota County authorized a contract with CliftonLarsonAllen, LLP (CLA) for three audit years (2017, 2018, 2019) not to exceed $263,550.
The contract was amended in May of 2020 to include two one-year extensions (audit years 2020 and 2021). The amendment included budgeted costs for 2020 and 2021 not to exceed $185,777.
The contract was again amended in September 2020 to expand the audit scope to include Coronavirus Aid, Relief, and Economic Security (CARES) Act fund expenditures.
The contract was again amended in 2021 to add the 2022 audit year and the Governmental Accounting Standards Board (GASB) standard 87 implementation and calculation services, which went into effect in Dakota County's 2022 Fiscal Year.
The contract was again amended in 2023 to extend the contract with CLA for auditing services for audit years of 2023, 2024, and 2025 in the total amount not to exceed $337,500.
The 2022 and 2023 annual audits, which took place in calendar years 2023, 2024, and 2025, incurred more auditor fees than originally expected due to several changes, challenges, and factors. The first factor related to delays in the audit related to challenges with implementing a new ERP (Dakota Connect) and the related technical issues and inefficiencies that caused for all parties involved with the 2022 and 2023 audits. The next factor included some key staff turnover that also incurred during the ERP implementation. Additionally, there was a lack of several key reports needed to reconcile cash, payables, and receivables that had to be developed and tested after the ERP was put in place before the 2023 audit could start. There were also additional fees incurred with the implementation of GASB 96 (subscription-based information technology agreements).
In June and July of 2025, the County’s finance department has taken measures to address the previously noted challenges, improve the timeliness of the audit, and help ensure the cost of the audit stays on target going forward. The County has hired a CPA with 13 years of Minnesota county audit experience as the audit unit manager. Additionally, the audit unit has utilized some of the County’s available technology to create an annual audit project tracker to monitor the progress and timing of audit preparations and auditor requests at a disaggregated level. Finally, more County audit unit staff are being assigned and trained to help with audit preparations and to respond as timely and accurately as possible to auditor requests.
Therefore, the finance department is requesting an increase to the contract total with CLA in the amount of $270,000 to cover the costs of the 2024 and 2025 audits that remain under contract with CLA.
The County plans to go out for bid for auditing services after the current contract expires.
RECOMMENDATION
recommendation
Authorize the Deputy County Manager to execute a contract amendment increasing the contract total with CLA in the amount of $270,000 for auditing services for audit years 2024 and 2025.
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EXPLANATION OF FISCAL/FTE IMPACTS
The proposed contract amendment will increase the total contracted amount for audit services with CLA in the amount of $270,000. An administrative budget amendment will be done to cover the contract increase with one time funding from countywide BIP.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, in 2016 Dakota County authorized a contract with CliftonLarsonAllen, LLP (CLA) for three audit years (2017, 2018, 2019) not to exceed $263,550; and
WHEREAS, the contract was amended in May of 2020 to include two one-year extensions not to exceed $185,777 for audit years 2020 and 2021; and
WHEREAS, the contract was amended in September 2020 to expand the audit scope to include Coronavirus Aid, Relief, and Economic Security (CARES) Act fund expenditures; and
WHEREAS, the contract was amended in 2021 to add the 2022 audit year and the GASB standard 87 implementation and calculation services; and
WHEREAS, the contract was amended in 2023 to extend the contract with CLA for auditing services for audit years of 2023, 2024, and 2025 in the total amount not to exceed $337,500; and
WHEREAS, the 2022 and 2023 annual audits, which took place in calendar years 2023, 2024, and 2025, incurred more auditor fees than originally expected due to several changes, challenges, and factors.
NOW, THEREFORE, BE IT RESOLVED, that the Dakota County Board of Commissioners hereby authorizes the Deputy County Manager to execute a contract amendment increasing the contract total with CliftonLarsonAllen, LLP in the amount of $270,000 for auditing services for audit years 2024 and 2025, subject to approval by the County Attorney’s Office as to form.
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PREVIOUS BOARD ACTION
17-286; 5/23/17
20-222; 5/5/20
20-422; 9/1/20
21-598; 12/14/21
23-341; 8/1/23
ATTACHMENTS
Attachment: CLA Contract Extension - 24 25 26
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Will Wallo
Author: Lucas Chase