(WSBT) The state looked at Roseland’s financial records from 2006 into early this year. It found major deficits in the town's general fund and its rainy day fund.

The state board of accounts says the records they received from clerk-treasurer Cheryl Gridley were incomplete.

But from what they were able to gather, Roseland is in financial trouble. Gridley says there's more to the story.

“They know what the $28,000 was,” she said.

The audit found the cash balances of six of the town's funds were overdrawn — the general fund and the rainy day fund by tens of thousands of dollars.

“The majority of the overdrawn is because of the legal bills,” Gridley said.

There are numerous lawsuits pending against the town of Roseland. The state said overdrawn funds are an indicator of serious financial problems. And Gridley agrees.

“Financially yes, we have to borrow money,” she said.

The state said Gridley did not give them the town's financial records in a timely manner.

There were missing receipts, bank statements, and payroll records. There were also errors in reporting balances.

“It's just a case of things not being maybe put in in a timely fashion,” Gridley said.

She added her health problems kept her from responding quickly to the audit.

“I was the only doing the actual accounting. So, there wasn't anyone else to do it, and I did it as I felt like I could do it,” Gridley said.

When asked whether she could have handed the duties off to someone else, Gridley said her deputy clerk is a 78-year-old lady who does not know computers.

“We did what we needed to do at the time and also with a limited amount of money,” Gridley added.

A court action to remove Gridley from office is on hold, but could be refiled.

Council members Ted Penn and Charley Shields declined to speak on camera, but they did say the audit speaks for itself.

Town council members will meet Friday morning to discuss taking out a loan to help pay the town's bills. Gridley said she's been pushing for that for months.