Course Title: Establish, manage and administer trust accounts

Part B: Course Detail

Teaching Period: Term1 2012

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

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


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


1.  Review for compliance with trust account requirements

Performance Criteria:

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

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

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

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

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

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


2.  Establish and manage trust accounts

Performance Criteria:

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

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

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

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


3.  Maintain records of trust transactions

Performance Criteria:

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

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

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


4.  Monitor and review trust accounts

Performance Criteria:

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

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

Feb 7
3.1, 3.3
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

Feb 14
2.2 – 2.3
3.1 – 3.3
3.1 – 3.3Recording Trust Account Transactions: General Trust Account
a. Trust account receipts
Feb 21
2.2 – 2.3
3.1 – 3.2
3.1 – 3.3,
Recording Trust Account Transactions: General Trust Account
b. Assessing the adequacy of trust account balances
c. Trust account payments
Feb 28
All above All above Comprehensive Exercises in preparation for QUIZ 1
Mar 6
All above All above  TEST 1
Mar 13
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
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
Mar 27
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


All above from week 7

All above from week 7 TEST 2
2.1 – 2.3
4.1 – 4.5
1.1, 4.1, 4.2Monitor & Review Trust Accounts
 Internal Controls
 External Audit
May 1
 2.1 – 4.5 1.1 – 4.2  Case Study Example & group meetings
May 8
 2.1 – 4.5 2.1 – 4.5 Group meetings  Case Study due
May 15
 2.1 – 4.5  1.1 – 4.2  Recording Trust Account Transactions in a computerized system
May 22
 2.1 – 4.5 1.1 – 4.2  Principles of Accounting & Financial Management:
Accounting for your conveyancing practice vs trust accounting
Conveyancing within the financial services industry
May 29
 1.1 – 1.3
5.1 – 5.3
 1.1 & 1.2  Review & return of case studies
 Retesting – Test 1 & Test 2

Learning Resources

Prescribed Texts

There is no textbook prescribed for this course.


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

TEST 1 - this test 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 (6th March).

TEST 2 - this test 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 (17th 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 8th May.

Assessment Matrix

Other Information

NOTE:  LAW5170C & SOSK5182C are taught & assessed concurrently.

Marking Guide (competency):

Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention.

You need to demonstrate you are competent in each element of the unit of competency you are studying.

You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. Once competent in all elements of the unit you receive a competency grading.

Please refer to the Final Grades table below.

Marking Guide (Grading)

After achieving competency we then grade your performance in the unit; this gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.

The grading is according to the following criteria:


We are looking for a high level of ability to complete all tasks independently as per the specifications as well as demonstrating a high level of initiative in your approach to preparing financial reports to meet statutory requirements.


We are looking for depth of understanding of the key concepts and knowledge required to prepare reports in compliance with statutory requirements. You should be able to demonstrate a thorough understanding of some applicable legislative requirements that relate to financial reports.


We are looking for appropriate techniques & processses in compiling & presenting corporate reports for external users & statutory authorities. You also need to show an understanding of the kinds of problems that can arise in the timely presentation & submission of reports.


We expect to see effective planning, self-management & work organisation resulting in timely submission of all required assessment tasks.


We expect to see contributions to relevant discussions & required teamwork. In addition you should demonstrate a range of well-developed communication & inter-personal skills appropriate to each task.

Final Grades table:

CHD Competent with High Distinction
CDI Competent with Distinction
CC Competent with Credit
CAG Competency Achieved – Graded
NYC Not Yet Competent
DNS Did Not Submit for assessment

Course Overview: Access Course Overview