Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

CPPDSM4006A Mapping and Delivery Guide
Establish and manage agency trust accounts

Version 1.0
Issue Date: March 2024


Qualification -
Unit of Competency CPPDSM4006A - Establish and manage agency trust accounts
Description This unit of competency specifies the outcomes required to establish and manage trust accounts in an agency context. It includes reviewing agency accounts for compliance with trust account requirements, establishing and managing trust accounts, maintaining records of trust transactions, and monitoring and reviewing trust accounts.The unit may form part of the licensing requirements for persons engaged in real estate activities in those States and Territories where these are regulated activities.
Employability Skills The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.
Learning Outcomes and Application This unit of competency supports the work of licensed real estate agents and agency principals involved in establishing, managing and administering agency trust accounts.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites Nil
Competency Field Real estate
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities
Slides
PPT
Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Review agency trust accounts for compliance with trust account requirements.
  • Agency trust account requirements are clearly identified, accurately recorded and continuously updated in line with relevant legislation and regulations.
  • Policies and procedures for accurate trust account keeping are developed which comply with trust account requirements, key principles of accounting and financial management, agency practice and legislative requirements.
  • Criteria for evaluatingelectronic and manual trust accounting systems are identified and applied to ensure compliance with all trust account requirements.
       
Element: Establish and maintain trust accounts.
  • Source documents for trust transactions are identified and accessed in line with legislative requirements.
  • Documentation of trust records and transactions are produced to give an accurate record of agency transactions on behalf of clients.
  • Transactions are supported by appropriate authorisation and documentation and are in line with agency practice and legislative requirements.
  • Entries and transactions are promptly and accurately recorded in line with relevant trust account requirements and agency requirements, and can be provided on demand.
  • Discrepancies in entries or documentation are promptly followed up to ensure clarification or resolution and are reported to relevant authorities where necessary.
  • Audit and security arrangements are checked to ensure they provide adequate protection for client confidentiality and client funds held in trust.
       
Element: Manage and control trust accounts.
  • Disbursements to and from trust accounts are authorised and managed within agreed agency protocols and legislative requirements.
  • Appropriate arrangements are made with third parties and other professionals to ensure that agency trust accounts comply with legislative requirements.
  • Agency trust administration policies and procedures are disseminated or made readily available to relevant staff in line with agency practice and legislative requirements.
  • Ongoing training of relevant agency staff is provided to ensure efficient operation of trust accounts and financial and IT systems, and compliance with agency practice and legislative requirements.
  • Procedures for monitoring records and ensuring the security of trust account records are developed and implemented.
       
Element: Monitor and review trust accounts.
  • Documentation and other reporting requirements are regularly reviewed for compliance with legislative requirements.
  • Trust account entries and transactions are regularly checked and monitored to ensure compliance with agency practice and legislative requirements.
  • Trust account transactions are monitored to ensure appropriate authorisation is obtained prior to any disbursements.
       
Element: Authorise and verify trust accounts.
  • Periodic reconciliation is verified by licensee in charge, in compliance with legislative requirements.
  • Periodic financial reports are prepared and discussed with clients to ensure their continued accuracy.
  • Records are maintained to enable them to be conveniently and properly audited.
  • Legislative audit requirements are met.
       


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Overview of assessment

This unit of competency could be assessed through practical demonstration of administering and managing agency trust accounts. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

A person who demonstrates competency in this unit must be able to provide evidence of:

application and knowledge of agency policies and procedures associated with trust accounts

application of financial management and accounting principles and knowledge

commitment to client service and maintenance of client confidentiality

establishing and managing agency trust accounts

knowledge of agency practice, ethical standards and legislative requirements for the operation of agency trust accounts

complying with legislative requirements for the operation and auditing of agency trust accounts

maintaining records of trust transactions

monitoring and reviewing agency trust accounts

reviewing agency trust accounts for compliance with legislative requirements.

Context of and specific resources for assessment

Resource implications for assessment include:

access to suitable simulated or real opportunities and resources to demonstrate competence

assessment instruments that may include personal planner and assessment record book

access to a registered provider of assessment services.

Where applicable, physical resources should include equipment modified for people with disabilities.

Access must be provided to appropriate learning and/or assessment support when required.

Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed.

Validity and sufficiency of evidence require that:

competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace

where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence

all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence

where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time

assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.

In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed.


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

This section describes the essential skills and knowledge and their level, required for this unit.

Required skills:

ability to communicate with and relate to a range of people from diverse social, economic and cultural backgrounds and with varying physical and mental abilities

analytical skills to interpret documents such as legislation, regulations, trust account records and financial reports

application of risk management strategies associated with establishing, administering and managing trust accounts

computing skills to use relevant office technology and software packages

decision making and problem solving skills to analyse and make decisions about agency trust accounts consistent with legislative and ethical requirements

literacy skills to access and interpret a variety of texts, including legislation, regulations, trust account records and financial reports; prepare general information and papers; prepare formal and informal letters, reports and applications; and complete standard forms

numeracy skills to calculate and interpret data contained in trust account records and financial reports

planning, organising and scheduling skills to monitor and review trust accounts

research skills to identify and locate documents and information relating to agency trust accounting requirements.

Required knowledge and understanding:

accounting and bookkeeping for financial control

agency administrative routines and practices

agency information technology and management systems

auditing and reporting requirements

ethical requirements

relevant federal, and state or territory legislation and local government regulations relating to:

anti-discrimination and equal employment opportunity

consumer protection, fair trading and trade practices

employment and industrial relations

financial services

OHS

privacy

property sales and management

risks and risk management strategies

security requirements

sources of information on agency trust accounting requirements

taxation and financial fees and charges

trust accounting, including:

audit and security arrangements

authorisations

documentation of trust records and transactions

discrepancies

factors that distinguish trust accounts from general agency accounts

fiduciary duties and responsibilities for trust account management and associated legal compliance requirements

internal control mechanisms in system specifications

methods of identifying and reporting discrepancies

operating, monitoring, reporting and auditing requirements of trust accounts

purpose of trust accounts

staff development and training

systems design, including fraud control, risk management and supervision of trust account entries and disbursements

use of third parties and other professionals to ensure compliance with legislative requirements.

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 in the performance criteria is detailed below. Add any 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.

Agency trust account requirements include:

audit and accounting requirements

client confidentiality

client instructions, expectations and needs

compliance of financial and IT systems and technology with relevant legislation and regulations

disclosure and reporting requirements

financial and IT systems and technology

relevant regulations and legislation regarding:

claiming commission

advertising reimbursement

administration fees

taxation and financial fees and charges.

Criteria for evaluating electronic and manual trust accounting systems must take into account the following factors:

administrative systems

Australian accounting standards and codes of practice

disclosure and reporting requirements

electronic funds management, including transfer, deposit and verification

ethical requirements

legislative and regulatory requirements:

at a minimum must provide monthly reconciliations

backup and off-site storage of hard copy available in English

must allow minimum monthly balance

office routines

security requirements

trust account procedures.

Source documents may include:

cheque butts

cheque register

contractor invoices

deposit slip duplicates

legal documentation - cooling off notification, early deposit release notification and settlement documentation

listing authorities

receipt duplicates

receipt registers

securities register

unclaimed moneys register.

Trust records may include:

account balance statements

account sales

bank reconciliation statements

rental statements

rescission statements

transfer journal

trust cash payments journal

trust cash receipts journal

trust ledger.

Transactions may include:

electronic, computerised or manual entries or processes

property management or property sales.

Discrepancies may include:

details of transactions, including insufficient or incorrect data on source documents

monetary, including:

claiming of entitlements

fraud

inadvertent bank charges

unclaimed moneys

timing, including:

audit reports

banking

claiming of entitlements

reconciling.

Relevant authorities may include:

agency principal

licensed real estate agent

office manager

regulatory authorities.

Security arrangements may include:

backup

physical and electronic storage of trust account records.

Disbursements may include:

account sales statements

agency entitlements, including:

advertising reimbursements

commission

contractor payments

letting fees

statement fees

fund remittances

rental or landlord statements.

Third parties and other professionals may include:

auditors

bookkeepers and accountants

industry associations

IT professionals

solicitors.

Periodic reconciliations may include:

as required by legislation

daily or monthly

quarterly.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Agency trust account requirements are clearly identified, accurately recorded and continuously updated in line with relevant legislation and regulations. 
Policies and procedures for accurate trust account keeping are developed which comply with trust account requirements, key principles of accounting and financial management, agency practice and legislative requirements. 
Criteria for evaluatingelectronic and manual trust accounting systems are identified and applied to ensure compliance with all trust account requirements. 
Source documents for trust transactions are identified and accessed in line with legislative requirements. 
Documentation of trust records and transactions are produced to give an accurate record of agency transactions on behalf of clients. 
Transactions are supported by appropriate authorisation and documentation and are in line with agency practice and legislative requirements. 
Entries and transactions are promptly and accurately recorded in line with relevant trust account requirements and agency requirements, and can be provided on demand. 
Discrepancies in entries or documentation are promptly followed up to ensure clarification or resolution and are reported to relevant authorities where necessary. 
Audit and security arrangements are checked to ensure they provide adequate protection for client confidentiality and client funds held in trust. 
Disbursements to and from trust accounts are authorised and managed within agreed agency protocols and legislative requirements. 
Appropriate arrangements are made with third parties and other professionals to ensure that agency trust accounts comply with legislative requirements. 
Agency trust administration policies and procedures are disseminated or made readily available to relevant staff in line with agency practice and legislative requirements. 
Ongoing training of relevant agency staff is provided to ensure efficient operation of trust accounts and financial and IT systems, and compliance with agency practice and legislative requirements. 
Procedures for monitoring records and ensuring the security of trust account records are developed and implemented. 
Documentation and other reporting requirements are regularly reviewed for compliance with legislative requirements. 
Trust account entries and transactions are regularly checked and monitored to ensure compliance with agency practice and legislative requirements. 
Trust account transactions are monitored to ensure appropriate authorisation is obtained prior to any disbursements. 
Periodic reconciliation is verified by licensee in charge, in compliance with legislative requirements. 
Periodic financial reports are prepared and discussed with clients to ensure their continued accuracy. 
Records are maintained to enable them to be conveniently and properly audited. 
Legislative audit requirements are met. 

Forms

Assessment Cover Sheet

CPPDSM4006A - Establish and manage agency trust accounts
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:


Assessment Record Sheet

CPPDSM4006A - Establish and manage agency trust accounts

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: