Trust Accounts RPL

This document provides a comprehensive study material on trust accounts, including gap assessment, checklist plan, reconciliation, expenses, and more. It covers legislative requirements, testing and tracking compliance, bank balance comparison, cash outflows, reconciliation process, property management, and fraud prevention.

Trust Accounts RPL
Gap Assessment

Contents
Question1.........................................................................................................................................3
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
Question 4........................................................................................................................................4
Question 5........................................................................................................................................4
Question 6........................................................................................................................................5
Part 1............................................................................................................................................5
Part 2............................................................................................................................................5
Question 7........................................................................................................................................5
Question 8........................................................................................................................................6
Question 9........................................................................................................................................6
Question 10......................................................................................................................................7
1...................................................................................................................................................7
2...................................................................................................................................................7

Question1
There are many trust accounting-software packages offered on the marketplace. Until buying one
of these, ensure that it has the potential to conform with the rule. At the behest of software
vendor, Department of trust accounts scrutinizes complying software programs for the purpose
of ensuring consistency with Uniform Law (NSW) as well as Uniform General Rules of
the Profession 2015 (Uniform Laws). There are certain legislative requirements for supervision
upon trust accounts system, as follows:
 Obligatory copies of such classified papers to be printed on monthly basis;
 file of trails audited for maintenance;
 records and trails of exemption for generated debit balances;
 the removal controls of the accounts of the ledger;
 the criteria for page numbers and entry transmission;
 criteria for mandatory input;
 the specifications of the backup facility.
Question 2
Checklist plan which can be employed for testing and tracking compliance with trust
accounts transactions regularly:
Conformity of trust account requirements of Review agency trust accounts: Trust account criteria
in compliance with applicable legislation are specifically defined, correctly registered, and
constantly updated. Appropriate trust account maintenance policies and procedures that satisfy
trust account criteria, core fiscal and accounting standards, organisation protocol, and regulatory
requirements are established.
Establishing and maintaining trust accounts: In accordance with statutory provisions, origins of
trustworthy transaction records are defined and obtained. A trust register documents and
transfers are created to record correctly on behalf of consumers the transactions of the
organisation. Proper authorisations and paperwork endorse transactions and are compatible with
department protocol and regulatory standards. Entries and purchases should be entered timely
and correctly and can be submitted on request in compliance with applicable trust account needs

and organisation specifications. Inconsistencies in entries or documents are immediately
monitored and submitted to the appropriate authority, if required, to ensure clarity or settlement.
Question 3
Start with bank balance and contrast cash inflows or withdrawals on trust accounting
records. Preferably, deposit entries in trust accounting records complement each transaction
on bank statement which should be labelled with washing. If you notice a transaction which does
not lead to any depositing entries in the reports on bank statement, trust-account records are also
incomplete. One must restore the missed entry to records, but must also analyses the accounts to
see if it may have been initially ignored. Please note that the aim is to ensure that all the
transactions that come through bank account represent trust account details so that have to deal
with any concerns if they occur.
Question 4
One will now have to do the same thing in case of cash outflows and disbursements,
after have cleared deposit records. Try comparing with disbursements reported in trust
accounts cheques and withdrawal transfers stated on bank statement. As for deposits, the
majority of withdrawals displayed on bank statement should follow certain details
of disbursement details of trust account. When you're not using disbursement details in
documents, a withdrawal reported in bank statement would need to amend file to fix the errors.
Question 5
When each month ends, one can take some time for completing a reconciliation of trust-
account. Two-way reconciliation matches internal accounts with their trust bank/cash account
operation in one of most critical reviews in trust account administration and helps one to ensure
that their records are reliable, full, and protected from unintentional misrepresentation. The
ultimate purpose of a trust reconciliation procedure is to compare, or transparent, transactions
in trust accounts by matching them to transactions reported on their bank statements to allow an
autonomous accounting of their bank account 's operation. The two documents must be in
complete balance with a balanced trust account.

For transfers, transfers which have not cleared bank are very normal to have been
reported in trust accounts. In the case of a bill for insurance, for instance, you can write and send
a cheque, but payer drops check or updates his address or misses to file this. All of that will lead
to a pause in cheque, which would be called a non-cleared charge if the cheque has not cleared
up bank at end of month. Any remaining checks must be taken out before disbursement occurs
on bank account and transaction could be cleared through any trust reconciliation. Till
then, monthly reconciliation would have to account with pending payments.
Question 6
Part 1
1. Cash book and bank statement
2. Receipts of rent
3. Rent Ledger
Part 2
Dr. Cr.
Particular Amount Particular Amount
Advertising
Contribution
3500 RE.com.au 750
149 Request 300 SMH Ad 1250
5Yo Deposit 42500 Brochures 1500
5% Bal Deposit 42500 149 Certificat 270
Refund of Advertising
contribution
30
Settlement 62050
Commission 2.7Yo 22950
Total 88800 Total 88800
Question 7.
Expenses relating to properties eg: repairs, rates: Check contracts, legal relevant documents and
related records to confirm that expenses are properly authorized. Expense should be entered in
accounts after receiving proper receipt or counterfoils.
Agency fees and commissions: Proper contract with agent regrading commission and fees.
Proper calculation and authorization of commission and fees should be made before entering into
trust accounts.

Settlement of sale: Proper settlement procedure must be specified to determine settlement
account. Appropriate authorization of sales settlement should be made.
End of month process for property management: Periodic reconciliation shall, in accordance with
statutory provisions, be reviewed by the licensee in authority. Periodic financial accounts are
written with continuous consistency and shared with customers. Records are held to allow them
to be accurately and easily End of month process for property management. Specifications for
legal audit are satisfied.
Question 8
Transactions may be recorded in trust account, but must be redeemed at the end
of month. Banks require time to access deposits — about 1-3 working days — which means that
uncleared transactions generally happen on the final days of month when deposits made. While
these deposits may appear on next month's cash book, in reconciliation at end of month, do have
to take care of them, so please notice that they will be noted later. If one see deposit transaction
which constantly remains uncleared month after month, an mistake has been made and an
alteration is expected.
Question 9
A principal licensee may appoint one LIC for the whole undertaking, or a variety of licensees for
the various sections of the undertaking – provided that they are confident that no portion of the
undertaking can be left unattended. One LIC is responsible for different sector components but
not above one LIC are responsible for same company component. It's the key licensee 's duty to
evaluate its company components. For instance, they may intend to call a LIC with each position
of an entity or enterprise area. Conversely, principal licenses may chooses, as each business
location may have a separate licensee assigned to have been in control of such place of
business, retain the same oversight arrangements they used to have before 23 March 2020.

Question 10
1.
Gives restricted access to accounts to employees – not every employee needs complete access to
capital, and only selected employees can manage trust accounts transaction.
Provide the required preparation of the Trust Account Management employees to detect device
anomalies, including regulatory enforcement awareness sessions and practices.
2.
Fraudulent activities occur adverse condition for business and in long run these can affect
business survival. These acts lead to loss of trust and confidence of customers on business as
well ass brand’s image in market. As most of customers are rely on company’s brand due to their
ethical practices thus fraudulent activities hurt their confidence and trust towards company and
its products.