Google Links

Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Evaluate trust account compliance
   • Identify, record and continuously update practice trust account requirements in line with relevant legislation and regulations
   • Develop policies and procedures for trust account-keeping according to trust account requirements, key principles of accounting and financial management, and legislative requirements
   • Identify and apply criteria for evaluating electronic or manual trust accounting systems and confirm compliance with trust account requirements
2. Establish and manage trust accounts
   • Identify and access source documents for trust transactions according to legislative requirements and practice policies and procedures
   • Produce documentation of trust records and transactions and confirm documentation is an accurate record of practice transactions on behalf of clients
   • Confirm transactions are supported by required authorisation and documentation and according to legislative requirements and practice policies and procedures
   • Record entries and transactions according to relevant trust account requirements, and provide to relevant stakeholder, where required
   • Identify discrepancies in entries or documentation and confirm clarification or resolution
   • Report discrepancies to relevant authorities, where required
   • Check audit and security arrangements and confirm they provide adequate protection for client confidentiality and client funds held in trust
3. Manage and control trust accounts
   • Authorise and manage disbursements between trust and office accounts according to legislative requirements and practice policies and procedures
   • Make required arrangements with third parties and other professionals and confirm that practice trust accounts comply with legislative requirements
   • Distribute practice trust administration policies and procedures to relevant staff according to practice and legislative requirements
   • Facilitate continuous training for relevant practice staff according to legislative requirements and practice policies and procedures
   • Develop and implement procedures for monitoring records and ensuring the security of trust account records
4. Monitor and review trust accounts
   • Review documentation and other reporting requirements for compliance with legislative requirements
   • Check and monitor trust account entries and transactions and confirm compliance with legislative requirements and practice policies and procedures
   • Monitor trust account transactions and confirm authorisation is obtained prior to any disbursements
5. Authorise and verify trust accounts
   • Verify periodic reconciliation in compliance with legislative requirements
   • Prepare and discuss periodic financial reports with clients and identify issues, where required
   • Maintain records for convenience and auditing
   • Meet legislative audit requirements

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

establish, administer and manage a trust in a practice on at least two occasions.

In the course of the above, the candidate must:

comply with statutory and legislative requirements for the operation of trust accounts

use standard accounting principles and financial management practices

follow practice policies and procedures.

---

Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

accounting and bookkeeping techniques for financial control

auditing and reporting requirements relevant to trust account operations

professional and ethical behaviour relevant to managing trust accounts

legislative and professional requirements relating to client security, privacy and confidentiality

features of commonly used IT and management systems, including trust account management software

trust account operations

practice policies and procedures relating to trust and office accounts

financial, privacy, disclosure and business legislation and regulations relating to trust accounts

security and ethical privacy procedures in relation to trust account operations

statutory standards on the operation, reporting and auditing requirements of a trust account

key processes required to monitor financial performance evaluation.

---