A NJ-based Registered Principal, serving as FinOp, was charged with filing an inaccurate FOCUS Report that indicated the broker-dealer's net capital (Walter J. Dowd Inc.) was above the firm’s minimum net capital requirement, when it was not.  A failure to account for accrued expenses caused the firm's net capital deficiency. Earlier Errors and Net Capital Deficiencies. This wasn't the first time for the firm or the FinOp, Michael Berger.  On one occasion, Berger attributed net capital deficiencies to 2 factors:  (i) a trading error that resulted in a loss;  and, (ii) certain aged commissions receivable - i.e., Berger erroneously included commissions’ receivable for a period greater than 30 days as an allowable asset.  Another time, Berger, on the firm’s behalf, reported to FINRA and the SEC that another net capital deficiency had been made due to his error in including certain non-allowable assets in the firm’s capital computations. Violations Committed. Due to Berger's errors, several violations were committed:  (i) firm violated Section 15(c) of the Exchange Act and Rule 15(c)3-1(c)2 thereunder by failing to maintain required minimum net capital;  (ii) firm violated SEC Rule 15c3-1 by conducting a securities business while not maintaining required net capital levels;  (iii) Berger, as FinOp, failed to promptly notify the NYSE that the firm's excess net capital had fallen below minimum required levels;  (iv) firm maintiained inaccurate books and records in violation of Section 17(a) of the Exchange Act, Rule 17a-3 thereunder, and NASD Rule 3110. Fines and Sanctions. Michael Berger agreed to a $5K fine and 10-day suspension as a FinOp.  He also must retake the FINOP exam and requalify as a FinOp before he can serve in that capacity with any FINRA. This is FINRA Case #2009017749701.   [FINRA Disciplinary Action for July 2011]