Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to establish, manage and administer a trust or controlled money account in a conveyancing practice. It encompasses reviewing for compliance with trust accounts requirements, establishing and managing trust accounts, maintaining records of trust transactions, and monitoring and reviewing of trust accounts. This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body. |
Application of the Unit
Application of the unit |
The unit has application to job roles involving establishing and managing a trust account in a conveyancing practice. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Review trust account for compliance with trust account requirements |
1.1. Practice trust account requirements are clearly identified, accurately recorded and continuously updated in line with relevant legislation and regulations 1.2. Policies and procedures for accurate trust account keeping are developed which comply with trust account requirements, key principles of accounting and financial management, and legislative requirements 1.3. Criteria for evaluating electronic and manual trust accounting systems are identified and applied to ensure compliance with all trust account requirements |
2. Establish and manage trust accounts |
2.1. Source documents for trust transactions are identified and accessed in line with legislative requirements 2.2. Documentation of trust records and transactions are produced to give an accurate record of practice transactions on behalf of clients 2.3. Transactions are supported by appropriate authorisation and documentation and are in line with practice and legislative requirements 2.4. Entries and transactions are promptly and accurately recorded in line with relevant trust account requirements, and can be provided on demand 2.5. Discrepancies in entries or documentation are promptly followed up to ensure clarification or resolution and are reported to relevant authorities where necessary 2.6. Audit and security arrangements are checked to ensure they provide adequate protection for client confidentiality and client funds held in trust |
3. Manage and control trust accounts |
3.1. Disbursements to and from trust accounts are authorised and managed within agreed practice protocols and legislative requirements 3.2. Appropriate arrangements are made with third parties and other professionals to ensure that practice trust accounts comply with legislative requirements 3.3. Practice trust administration policies and procedures are disseminated or made readily available to relevant staff in line with practice and legislative requirements 3.4. Ongoing training of relevant practice staff is provided to ensure efficient operation of trust accounts and financial and IT systems, and compliance with practice and legislative requirements 3.5. Procedures for monitoring records and ensuring the security of trust account records are developed and implemented |
4. Monitor and review trust accounts |
4.1. Documentation and other reporting requirements are regularly reviewed for compliance with legislative requirements 4.2. Trust account entries and transactions are regularly checked and monitored to ensure compliance with practice and legislative requirements 4.3. Trust account transactions are monitored to ensure appropriate authorisation is obtained prior to any disbursements |
5. Authorise and verify trust accounts |
5.1. Periodic reconciliation is verified in compliance with legislative requirements 5.2. Periodic financial reports are prepared and discussed with clients to ensure their continued accuracy 5.3. Records are maintained to enable them to be conveniently and properly audited 5.4. Legislative audit requirements are met |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
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Context of and specific resources for assessment |
Assessment must ensure:
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Method of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. |
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Trust account requirements include but are not limited to: |
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Electronic or manual trust accounting system performance must take into account, the following factors: |
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Trust transactions may include: |
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Unit Sector(s)
Unit sector |
Conveyancing |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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