TO: Board of Supervisors
FROM: Tracy Schulze, Auditor-Controller
REPORT BY: Christine Hernandez, Deputy Auditor-Controller
SUBJECT: Agreement with CliftonLarsonAllen LLP for Audit Services for Fiscal Years Ending June 30, 2026, 2027 and 2028
RECOMMENDATION
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Approve and authorize Agreement No. 260355B with CliftonLarsonAllen LLP (“CLA”) for audit services for fiscal years ending June 30, 2026, 2027 and 2028, in an amount not to exceed $76,960 per contract year, with two optional one-year renewals at the discretion of the Auditor-Controller. (Fiscal Impact: $76,960 Expense; Various Funds; Budgeted; Mandatory)
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BACKGROUND
Every five years, the Auditor-Controller issues a Request for Proposals (RFP) for professional auditing services for the County and various special districts for which the Auditor-Controller is responsible for financial reporting and internal controls. Services for the County include the audit and publication of the Annual Comprehensive Financial Report (ACFR), the Single Audit, the annual Gann Limit review, the Treasury Oversight Committee compliance audit, annual audits of the County's Transportation Development Act funds, and audits of two component units: the In-Home Supportive Services Public Authority and the Napa County Housing Authority. The RFP also includes professional auditing services for nine special districts under the Auditor-Controller's financial reporting responsibility that utilize the County's enterprise financial system (Tyler Munis). The special districts will enter into separate agreements directly with the selected firm, independent of the County’s contract.
On February 25, 2026, the Auditor-Controller's Office issued an RFP for these services, soliciting proposals for a term covering fiscal years ending June 30, 2026, 2027 and 2028, with two optional one-year extensions at the discretion of the Auditor-Controller. Proposals were due on April 3, 2026, and the County received five responsive submissions. None of the proposing firms were local. The County's prior external auditor served in that role for ten years. While not required, periodically rotating audit firms is considered best practice and can provide a fresh perspective.
Proposals were evaluated by an Audit Review Team consisting of the Auditor-Controller and Deputy Auditor-Controller, with input from the Senior Accountant-Auditor and Principal Grant Compliance Auditor. All five proposals met the mandatory requirements of the RFP. Evaluation criteria included technical expertise and cost, weighted at 60 percent and 40 percent, respectively. Based on the results of the evaluation process, CliftonLarsonAllen LLP received the highest overall score, and the Audit Review Team recommends awarding the contract accordingly.
CLA' s proposal for County services includes total annual fees of $76,960 for each year of the initial three-year term, with no increase for the two optional one-year extensions. Of this amount, $60,960 represents costs for the ACFR, Single Audit, Gann Limit review, and management letter. The remaining $16,000 relates to services provided to non-ACFR entities for which the County is responsible.
The annual cost breakdown is as follows:
|
Department or Entity |
Budget Unit |
Annual Cost |
|
County Services |
|
|
|
County Audit/ACFR/Single Audit |
1052000 |
$60,210 |
|
Gann Limit Review |
1052000 |
750 |
|
Napa County Transportation Development Act Funds |
1052000 |
2,150 |
|
Treasury Oversight Committee |
1120000 |
2,130 |
|
In-Home Support Services Public Authority of Napa County |
2700000 |
4,630 |
|
Napa County Housing Authority |
5060000 |
7,090 |
|
Total All-Inclusive Maximum Contract Price |
|
$76,960 |
Requested Action: Approve and authorize the Chair of the Board to sign Agreement No. 260355B with CliftonLarsonAllen LLP (“CLA”) for audit services for fiscal years ending June 30, 2026, 2027 and 2028, in an amount not to exceed $76,960 per contract year, with two optional one-year renewals at the discretion of the Auditor-Controller.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
|
Is it currently budgeted? |
Yes |
|
Where is it budgeted? |
Appropriations will be included in the fiscal year 2026-27 budget within the divisions of Central Services, Treasurer-Tax Collector, In-Home Supportive Services, Napa County Housing Authority. |
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Is it Mandatory or Discretionary? |
Mandatory |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Fees for the second and third contract years will remain unchanged from those presented above and will be incorporated into future budgets. |
|
Consequences if not approved: |
Government Code Section 25250 states, in part, that “at least biennially, the Board of Supervisors shall examine and audit, or cause to be audited, the financial accounts and records of all officers having responsibility for the care, management, collection, or disbursement of money belonging to the county or money received or disbursed by them under authority of law.” |
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Additional Information |
County Strategic Initiative: Elevate County Services and Workforce Excellence |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.