last year items
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I need a little help. I have recently taken on the role of Clerk to a community council, and am also the responsible finance officer. We have had the internal audit done on last year's accounts, but there were some bank statements missing. Upon getting these statements, there are some bank interest items that relate to last year. What do I do with these? Can I just add them to last year's accounts, add them to this year's accounts with a note, or is there a special process I need to go through? The accounts haven't had their external audit yet.
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last year items
hi,<BR><BR>I will try to answer your query, but I am a little confused as to where you are up to. You say that your internal audit was on last year's accounts. Presumably, therefore, if bank statements were missing then your bank reconciliation may not balance? Am I correct in my assumption? If you have not had an external audit on last year's accounts, or if they have not been approved, then you can simply correct the entries in last year - which I suppose is where you are up to considering the external audit has not yet been undertaken. Your closing bank balance must agree as at the year end as this will be the opening position at the bank on day 1 of your new (or current as it may be now) financial year. For example, if your year ends on 31 March 2005 and your bank reconciliation did not balance as bank statements relative to that year were missing, then this would need to be corrected as if it wasn't your opening bank balance at 1 April 2005 would also be wrong and also the opening reserves would be misstated (this is because the items on the missing bank statements would not have been put to either income or expenses depending on what they are). So, in answer to your query (provisionally) I would say that if you're external audit has not been undertaken and the prior year's figures have not been approved then you will need to alter the prior year in order to ensure your opening trial balance is correct.<BR><BR>I hope you can follow this rather long winded explanation. If you need any more help please let me know.<BR><BR>Regards<BR>Steve0 -
last year items
Steve<BR><BR>In another reply it turns out that the amount we are talking about is about £30 and it has been audited by another clerk. <BR><BR>I would be interested in what you think should be done, I've made a suggestion but you have more experience and would give the right answer!!<BR><BR>Annette0 -
last year items
Sorry, I forgot to mention that the missing bank statements were from our Reserve Account. Therefore as the account is rarely used, There were no transactions (as far as I could tell) missing. Now we have the bank statements, I have discovered the interest receipts, totalling £31.21 The total precept we received last year was just over £3k, so I would consider this interest to be a material amount. The internal audit does state that it was made on the bank statements made available at the time, so I would intend to add the interest to the accounts for last year. I just am not sure how to do it or what to show. Do I prepare a new statement of accounts, or do I simply add it to the bottom of the one already prepared?0 -
last year items
Have last years accounts had to be filed anywhere i.e. with the local council? This may make a difference as to whether you can adjust them or not.<BR><BR>Annette0 -
last year items
No, all that has happened with the accounts is they have had their internal audit and council have agreed them. They have not been filed anywhere yet, nor published.0 -
last year items
I would guess that they can be adjusted then.<BR><BR>Annette0 -
last year items
hi guys<BR><BR>I've read the messages on the other forum re last year items. I would agree that £30 is far from material and therefore you could alter last year's accounts to reflect the bank interest but if this is not possible then I would simply adjust the opening balance in the current year and post the other side to bank interest receivable. Either way as long as the opening balance is correct there would be no major implications.<BR><BR>Regards<BR>Ste0