Course Title: Establish, manage and administer trust accounts

Part B: Course Detail

Teaching Period: Term1 2011

Course Code: LAW5170C

Course Title: Establish, manage and administer trust accounts

School: 650T TAFE Business

Campus: City Campus

Program: C5180 - Diploma of Financial Services (Conveyancing)

Course Contact : Jenny Wotzko

Course Contact Phone: +61 3 99255701

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

None

Course Description

This course provides the knowledge and skills required to establish, manage and administer trust and/or controlled money accounts.

If you are undertaking this course in Melbourne from semester 2, 2012 onwards your teacher will advise you if you require access to a computer for the course. It is recommended that you have access to a mobile computing device to allow greater flexibility in terms of where you can work on campus outside class times.

 


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSCONV503B Establish, manage and administer trust accounts

Element:

1.  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

Element:

2.  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:

3.  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:

4.  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


Learning Outcomes



Details of Learning Activities

Each week students will be introduced to a new aspect of the professional management & administration of trust accounts, with an explanation of the requirements of the Conveyancers Act 2006 followed by practical demonstrations of how each procedure is carried out.

Students will then complete graded exercises, both in class and at home and will participate in group discussion, problem-solving and case studies in a mock work environment.


Teaching Schedule

Week/ Date
              
  
 Perform
Criteria
FNSICIND401A
Perform
Criteria
FNSCONV503B
Topic
Assessment

1
Feb 8
2.1-2.2
3.1, 3.3
5.1-5.3
1.1 – 1.6,
2.1, 2.2
Trust Account Requirements:
What is ‘Trust money’?
What is a ‘Trust Account’ & when is it used?
Trust account legislation & regulations
Establish & Maintain Trust Accounts:
Opening a Trust Bank Account
Setting up a manual Trust Accounting System
Setting up a new client within the trust accounting system, including Costs Agreement.
Case study and Assessments explained

2
Feb 15
2.2 – 2.3
3.1 – 3.3
3.1 – 3.3Recording Trust Account Transactions: General Trust Account
a. Trust account receipts
 
3
Feb 22
2.2 – 2.3
3.1 – 3.2
3.1 – 3.3,
4.2
Recording Trust Account Transactions: General Trust Account
b. Assessing the adequacy of trust account balances
c. Trust account payments
 
4
Mar 1
All above All above Comprehensive Exercises in preparation for QUIZ 1
 
5
Mar 8
All above All above  QUIZ 1
6
Mar15
2.2 – 2.3
3.1 – 3.2
3.1 – 3.3, 4.1, 4.2 Recording Trust Account Transactions: General Trust Account
d. Journal transfers
 
7
Mar22
2.1 – 2.3, 3.1 – 3.3 1.3,
3.3, 4.1, 4.2
Monitor & Review of Trust Accounts:
Cash Control and Bank Reconciliations
 
8
Mar29
  EXCURSION
 
9
Apr5
2.1 – 2.3
3.1 – 3.2
2.1-2.2, 3.1-3.3, 4.1Recording Trust Account Transactions: Transit Money & Controlled Money
+
Comprehensive exercises in preparation for Quiz 2

 
10
Apr12
All above from week 7All above from week 7 QUIZ 2
11
Apr19
1.3,
2.1 – 2.3
4.1 – 4.5
1.1, 4.1, 4.2Monitor & Review Trust Accounts
 Internal Controls
 External Audit
 
STUDENT VACATION    
 12
May 3
 2.1 – 4.5 1.1 – 4.2  Case Study Example & group meetings
 
 13
May10
 2.1 – 4.5 2.1 – 4.5 Group meetings  Case Study due
 14
May17
 2.1 – 4.5  1.1 – 4.2  Recording Trust Account Transactions in a computerized system
 
 15
May24
 2.1 – 4.5 1.1 – 4.2  Recording Trust Account Transactions in a computerized system
 
 16
May 31
 1.1 – 1.3
5.1 – 5.3
 1.1 & 1.2  Principles of Accounting & Financial Management:
Accounting for your conveyancing practice vs trust accounting
Conveyancing within the financial services industry
 Retesting – Quiz 1 & Quiz 2
 17
June 8
   Review & return of case studies
 


Learning Resources

Prescribed Texts

There is no textbook prescribed for this course.


References

Part 5 of the Conveyancers Act 2006 - available to download from MY RMIT STUDIES. Conveyancers Act (Trust Account) Regulations 2007 - available to download from MY RMIT STUDIES


Other Resources

Comprehensive notes, worked examples, class exercises and solutions are all provided on MY RMIT STUDIES.


Overview of Assessment

Assessment may incorporate a variety of methods including in-class exercises, problem-solving exercises, assignments, group or individual projects, presentations and written or practical tests, as well as homework activities.

Other activities may be workplace-based or simulate work practices. These may include direct observation of workplace practices, verbal questioning and the presentation of a portfolio of evidence.

You are advised that you may be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met. 

You  will be provided with feedback throughout the course to check your progress.
 


Assessment Tasks

Quiz 1 - this quiz will assess performance criteria 1.3, 2.1, 3.1 - 3.3 and 4.2 with respect to the recording and management of trust account receipts and payments. It will contribute 30% of the total mark for the course and will be held in week 5 (8th March).

 
Quiz 2 - this quiz will assess performance criteria 1.4 - 1.6, 3.3 and 4.1 - 4.2 with respect to cash control, trust account reconciliations and reports. It will contribute 30% of the total mark for the course and will be held in week 10 (12th April).


Case Study - the case study will require small groups of students to design and document a trust accounting system appropriate to their existing or proposed conveyancing business and to use that system to record and report on a comprehensive set of conveyancing transactions. It will contribute 40% of the total mark for the course and will be due for submission on 10th May.


Assessment Matrix

Course Overview: Access Course Overview