ADRIAN — The City of Adrian received a clean audit for the past fiscal year during the December first commission meeting.
Finance auditors Amiras Kari of Clark Schaefer Hackett and Audit Manager Cody Mitchell reported an unmodified opinion, meaning the city’s financial statements met all required standards with no findings, deficiencies, or compliance issues.
The review showed a General Fund balance of about $8.9 million, with reserves equal to 67% of annual operating expenses. Auditors said that level indicates a healthy position for the city.
The presentation also addressed the city’s pension system, which is funded at 59.4%. That places Adrian just below the state’s underfunded threshold. The city continues to receive a state waiver, and auditors noted that market performance was the primary factor affecting the funding level.
The report also covered capital assets, liabilities, ARPA spending, and Moody’s guidance on fund balance policy.