Our previous two treasurers left after disagreements with our Board of Directors so I was asked to "fill in" until they could be replaced. In the process of balancing two sweep accounts they had not been balancing I discovered that one of the accounts is understated on our books by over $3,900.00. These are sweep accounts that our investment funds pass through so this could be unaccounted for interest on investments or gain on sale of investments. There is no way for me to know exactly as one of the four previous treasurers continually closed old accounts and opened new ones when he couldn't get the accounts to balance, making an "adjusting entry" each time. There of course was an investigation and the Board, Supervisory Committee, and Examiners determined this was most likely investment income that was not properly accounted for over an extended period (several years). Can you tell me how to adjust for this difference? Accounting is not my field and I've been in this "temporary position" for years now with no sign of them finding my replacement. Thank you!

The first question here is have you crossed the annual reporting balance date? If not or in any case how substantial is the error relative to annual and quarterly income. I would say what you need to do here is declare a prior year adjustment so the revenues of the current period are not distorted but seek professional advice such as from an auditor.

An adjustment such as this might be significant relative to the individual caption but insignificant when viewed againsr total revenues