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Elements and Performance Criteria

1. Check that trust funds are adequate
2. Draw cheque/s against the trust account
3. Prepare documentation upon completion of legal matter

Required Skills

This Unit covers the maintenance of trust monies related to specific files under the instruction of a legal practitioner

Note It may be illegal for a person without a current legal practice certificate to provide legal advice to sign off on legal work and receive trust account monies The use of trust account monies is subject to legislative control Accordingly work carried out in regard to trust account monies occurs under the instruction of a legal practitioner and is of a complex but specified nature Therefore the position of this unit at AQF Level is in relation to the level of responsibility and technical complexity required in the tasks involved

This unit can be assessed alone or in combination with other units making up a job role

Element	Performance Criteria
Check that trust funds are adequate	Relevant sources are checked for information regarding disbursements and costs Estimated disbursements and costs are calculated and reconciled with available trust funds Instructing legal practitioner is notified where there are inadequate available funds Client is notified that further funds are required where necessary according to a firms policies and procedures
Draw cheques against the trust account	Appropriate requisition form is completed Authorisation is gained from instructing legal practitioner according to a firms policies and procedures Cheques are inspected for accurate amount and correct account source Instructing legal practitioner is organised to verify and sign cheques Accurate records are kept of all file related disbursements and costs
Prepare documentation upon completion of legal matter	Relevant informationdocumentation from file is collated Monies remaining in trust account are reconciled Discrepanciesirregularities are investigated promptly and appropriate follow up action is taken

Evidence Required

Critical aspects	understanding of scope of own responsibility is demonstrated an understanding of trust accounting principles and practices within the limits of the employees responsibilities is demonstrated an understanding of a firms trust and general accounting procedures is demonstrated correct usage of different types of documents is demonstrated documentation is filled out correctly and presented to instructing legal practitioner within agreed timelines records of disbursements are accurate and uptodate according to a firms policies and procedures evidence of knowledge of the type of discrepancies and irregularities which could arise and standard resolutions discrepancies and irregularities are resolved within scope of own responsibility and those outside of own responsibility are referred immediately to instructing legal practitioner eg files with inadequate funds calculations and reconciliations are checked for accuracy numerical information is checked contact with client regarding inadequacy of funds is handled sensitively and according to a firms policies and procedures legal actions legislative requirements and invoicing procedures are explained to client in simple language where appropriate check for written authorisation from client and instructing legal practitioner is obtained when moving trust account money into interest bearing account documentation prepared at the completion of a legal matter is complete and accurate filematter number is attached to all relevant documentation and such documentation is filed appropriately a firms trust accounting procedures legislative and regulatory requirements are complied with nondisclosable information is not communicated and where any doubt exists as to the informations status it is not disclosed activities actions and outcomes are documented and time is recorded honesty and integrity are demonstrated in all financial dealings all work is conducted within accepted codes of conduct including those relating to maintaining confidentiality use of company property duty of care ethical behaviours privacy nondiscriminatory practice conflict of interests and compliance with reasonable direction reports in relation to trust monies are compiled and reviewed in line with firms policies and procedures
Resource implications	The assessor must have access to appropriate documentation and resources normally found in the work environment and required to allow the job or task to be properly performed These may include appropriate legislation and regulations relevant to assisting clients maintaining business accounts maintaining trust accounts and transferring trust monies workplace manuals and reference materials such as company policy procedural manuals and checklists appropriate technology such as computers with relevant software calculators adding machines and imprinters
Consistency in performance	This unit of competency will require evidence to be collected across a range of events eg dealing with trust account requirements and over a period of time to ensure that situational variables are consistently achieved
Context of assessment	Evidence of competency can be met in different situations including on the job assessment off the job assessment placement in an enterprise participation in a New Apprenticeship traineeship arrangement use of a Practice Firm or simulated work environment flexible delivery methods used by training providers to cater for distance education students Recognition of Prior Learning Recognition of Current Competencies in skill areas where there has been no significant change to work practice in recent times Evidence gathering methods may include demonstration questioning workplace performance roleplay simulation projectsassignments written tests skills portfolio third party reports
Underpinning knowledge and skills	Knowledge a firms general and trust accounting policies procedures and systems bank procedures and policiesrequirements relevant current legislation see Range of Variables legal terminology in relation to trust accounting and the matter at hand procedures for authorising cheques against the trust account preparing cheques securityconfidentialityprivacy Australian Standards Association Code of Practice and Accounting Standards Australian Accounting and Auditing Standards Australian Taxation Office regulations establishing a trust account transferring assets statutory charges taxes and other fees applicable to institutions Skills literacy follows written or verbal sequenced instructions about a complex legal matter numeracy knowledge of mathematical procedures in relation to trust accounting financial calculations and bookkeeping interprets compares calculates and checks for accuracy with money in legal context interpersonal skills in relation to coworkers and clients use of accounting records system communication listens to clear instructions questions to clarify information

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