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 – 3.3	Recording 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, 4.1	Recording Trust Account Transactions: Transit Money & Controlled Money + Comprehensive exercises in preparation for Quiz 2
10 Apr12	All above from week 7	All above from week 7		QUIZ 2
11 Apr19	1.3, 2.1 – 2.3 4.1 – 4.5	1.1, 4.1, 4.2	Monitor & 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