Course Title: Establish, manage and administer trust accounts

Part B: Course Detail

Teaching Period: Term1 2008

Course Code: LAW5140C

Course Title: Establish, manage and administer trust accounts

School: 650T TAFE Business

Campus: City Campus

Program: C5180 - Diploma of Financial Services (Conveyancing)

Course Contact : jennifer.wotzko@rmit.edu.au

Course Contact Phone: +61 3 9925- 5701

Course Contact Email:jennifer.wotzko@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Nominal Hours: 50

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites

Training Package Pre-requisites: NIL
RMIT Co-requisites: SOSK 5138C Apply principles of professional practice to work in the financial services industry (FNSICIND401A)

Course Description

This unit describes the function of establishing, managing and administering trust and/or controlled money accounts.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSCONV503A Establish, manage and administer trust accounts

Element:

Establish and manage trust accounts

Performance Criteria:

2.1 Financial and other performance requirements are determined in accordance with client instructions, legislative, regulatory, industry and practice requirements

2.2 Appropriate arrangements are made with third parties and other professionals to ensure compliance with statutory requirements for the operation of trust accounts

2.3 The practice's trust administration policies and procedures are disseminated or made readily available to relevant staff or clients in an appropriate format

2.4 Ongoing training to all relevant staff is provided to ensure efficient operation of trust accounts, financial and IT systems and implementation of plans

Element:

Maintain records of trust transactions

Performance Criteria:

3.1 All transactions are supported by appropriate authorisation and documentation, meet all relevant trust account requirements, and are in line with client instructions

3.2 All relevant entries and transactions are promptly and accurately recorded in accordance with all relevant trust account requirements and with the practice's requirements and can be provided on demand

3.3 Any discrepancies in entries or documentation are promptly followed up to ensure clarification or resolution and are reported to relevant authorities where necessary

Element:

Monitor and review trust accounts

Performance Criteria:

4.1 Trust account entries and transactions are regularly checked and monitored to ensure compliance with regulatory, legislative, client and the practice's requirements

4.2 Trust transactions are monitored to ensure client authorisation is obtained prior to any disbursements

Element:

Review for compliance with trust account requirements

Performance Criteria:

1.1 Policies and procedures for accurate trust account keeping are developed which are in accordance with trust account requirements and with key principles of accounting and financial management

1.2 Financial and information technology (IT) systems are evaluated and reviewed to ensure compliance with all trust account requirements

1.3 Trust account requirements are clearly identified, accurately recorded and continuously updated in accordance with relevant legislation and regulations

1.4 Documentation of trust records and transactions are reviewed to ensure compliance with statutory, legislative, legal and professional requirements and with the practice's policy and procedures

1.5 Audit and security arrangements are checked to ensure they provide adequate protection for client confidentiality and client funds held in trust

1.6 Documentation and other reporting requirements are regularly reviewed for compliance with all trust account requirements


Learning Outcomes


On completion of this course you should be able to:

  • demonstrate an understanding of the general operation of trust accounts,
  •  control and account in both a legal and ethical manner for all trust moneys received and paid,
  •  clearly report to stakeholders how trust monies have been dealt with.


Details of Learning Activities

Using the Conveyancers Act/Regulations and case studies, students will be progressively introduced to the skills and knowledge required to
establish, manage and administer trust accounts for conveyancing.
Activities will include class discussion & debate, graded in-class
exercises & the analysis of case studies.


Teaching Schedule

WeekWeek
Commencing
Perform
Criteria
Topic Assessment
1 Feb 11 1.3Trust Account Requirements:
What is ‘Trust money’?
What is a ‘Trust Account’ & when is it used?
Trust account legislation & regulations
Case study and Assessments explained
2Feb 18 1.3 Trust account legislation & regulations
Conveyancers Act 2006
Conveyancers Regulations, 2007
 
3Feb 25 1.1 & 1.2 Principles of Accounting & Financial Management:
Accounting for your conveyancing practice vs trust accounting
 
4 Mar 3 1.3 – 1.5, 2.1 Accounting for your conveyancing practice vs trust accounting (cont’d)
Design/modification of accounting system to comply with trust account requirements
 
5 Mar 10 2.1 – 2.4 Establish & Maintain Trust Accounts:
Opening a Trust Bank Account
Design/modification of accounting system to comply with trust account requirements (cont’d)
Quiz 1
6 Mar 17 2.1 – 2.4 As above
Case study group meetings
 
   Student Vacation (Thursday 20th March – Wednesday 26th March inclusive)  
  7
Mar 31 3.1 – 3.3  Recording Trust Account Transactions:
a. Trust account receipts 
 
8 April 7 3.1 – 3.3, 4.2 b. Assessing the adequacy of trust account balances
c. Trust account payments
Quiz 2
9 April 14 3.1 – 3.3, 4.2 d. Trust Ledger Accounts
e. Journal Transfers
Case study group meetings
 
10 April 21 3.3, 4.1, 4.2 Monitor & Review of Trust Accounts:
Cash Control and Bank Reconciliations
Quiz 3
11April 28 3.3, 4.1, 4.2 Reconciliations & reports
 
12 May 5 1.3, 3.1 – 3.3, 4.1 - 4.2 Transit Money & Controlled Money
Case study group meetings
 
13 May 12 1.1 - 4.2

Case Study Example

Case study group meetings

 
14 May 19 1.1, 4.1, 4.2 External Monitor & Review:
Audit of Trust Accounts
Case Study due
15 May 26 1.1 - 4.2 Revision
 
16 June 2 3.1 – 3.3 Application of Trust Accounting to purchase of a business
 
17 June 9  Retesting & return of case studies Quiz 4
18 June 16  Re-Testing
 
   Please note that this schedule may be subject to change.  Students will be notified of any changes on the learning hub and in class. 


Learning Resources

Prescribed Texts

None.  See references.


References

Part 5 of the Conveyancers Act 2006 & Draft Regulations 2007,
provided on the Learning Hub.

Notes on Recording Trust Account Transactions provided on the
Learning Hub progressively through the semester.


Other Resources


Overview of Assessment

A student must demonstrate a clear understanding of all elements of the required competencies to be deemed competent. Assessment may include a variety of methods including tests, workbooks, presentations, class exercises, assignments etc. Formative feedback is provided throughout the course. This occurs by the teacher providing information to the student to inform them how they are succeeding in the course and areas that require more work to succeed. Formative feedback is not a piece of assessment that contributes to the student’s final result.


Assessment Tasks

Quizzes 1 to 3                                                         (3 x 10%)                                             30%
Quiz 4                                                                                                                                     20%
Comprehensive Case Study                                                                                             50%


Assessment Matrix

Course Overview: Access Course Overview