ROWE — The town’s first audit in eight years revealed that Rowe is in a pretty good financial state, despite some record-keeping errors that left the town with understated free cash, an overstated stabilization fund, and cash reconciliation issues with the town’s payroll and vendor warrants.

Last spring, the town hired Roselli, Clark & Associates to audit its finances for fiscal year 2023. After a few months of review, Managing Partner Tony Roselli presented his findings to the Rowe Selectboard on Oct. 29.

“The records were not in good shape, I’m not gonna lie,” Roselli told the board. “It’s obvious there are a lot of things that have gone incorrectly for a number of years.”

Between the payroll and vendor warrants and the stabilization fund transfers, Roselli explained, the town had about half a million dollars misrepresented, with the total FY23 budget amounting to nearly $4.46 million. Additionally, the town had uncashed checks it had not claimed, tax withholding errors in payroll for school employees, $12,000 in deficits in police details, and other accounts that had received Town Meeting approval to be moved to the general fund but were instead left in the stabilization fund.

“Had we not done the audit, you would have been out of balance. These things may not have been corrected and would have rolled over to ’25 and so on, and kept accumulating as errors,” Roselli said. “I think it’s a good thing you had the audit when you did.”

Roselli said he believed these issues came from former town accountants helping the former treasurer file transfers and paperwork, instead of keeping their own records and balancing their own books, and then meeting quarterly to review and ensure everything lines up.

Despite the errors in recording, Roselli said the town is in good financial shape with a balanced budget and a substantial stabilization fund of around $2 million.

“Financially, you’re in very good shape,” Roselli told the Selectboard. “If this was a different town, with all of these hiccups and reconciliation items, lack of checks and balances, you wouldn’t be as fortunate. You might be facing some more severe problems.”

Roselli said he feels confident in the town’s new accountant, Angela Garrity. While new Treasurer Ben Gelb is “a little green,” Roselli said he is certain Gelb is up to the task.

As an extra layer of financial precaution, Roselli held a workshop last week with Garrity and Gelb to review his report and answer any bookkeeping questions. The town also plans to have Roselli audit its FY24 finances next spring to ensure any mistakes from previous budget years have been corrected.

Roselli also recommended that after the back-to-back audits for FY23 and FY24, the town schedule audits every two to three years. He said for a town of Rowe’s size, having an audit every year isn’t necessary and isn’t always feasible, but having one every three years is appropriate.

“We need to tighten up,” said Selectboard member Bill Baker. “We need to know what’s coming in and out.”

Reach Madison Schofield at 413-930-4579 or mschofield@recorder.com.