ADRIAN — Acting on a recommendation from the new city administrator, the Adrian City Commission has authorized an outside review of financial controls associated with the $15 million enhancement grant that the city was awarded by the state of Michigan in 2022.

The grant, which took the form of an earmark in that year’s state budget, is being used for a variety of projects, including work on North Winter Street and a planned town square between the 100 blocks of South Main and South Winter streets.

On Oct. 20, the city commission approved city administrator Chad Baugh’s request to hire UHY Advisors, an audit firm with offices in Farmington Hills, to conduct “a focused review of the financial controls associated with the $15 million enhancement grant.”

The resolution passed by the commission stated that “the proposed review will help confirm that appropriate internal controls are in place to safeguard taxpayer dollars, verify expenditures, and ensure that all disbursements comply with the approved grant terms and project objectives. This step will also identify any areas where additional safeguards or procedural improvements may be beneficial before major project expenditures occur.”

Baugh told commissioners he believes the review will help the city understand “how the money’s being spent, how it’s been spent to date, and give clear transparency to not only this commission but the citizens” about how the grant is being used.

Commissioner Mary Roberts asked: “Just to be clear, it’s not because we feel that there’s anything nefarious or unethical or illegal going on — it’s just that we kind of lost track of dotting our I’s and crossing our T’s, and so we’re doing our due diligence to make sure we know exactly where the money is?”

Baugh agreed. He also said that he expects to have a report back from the auditors in time for either the Nov. 17 or Dec. 1 commission meeting.

The commission authorized spending up to $9,500 for the review.