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Evidence Guide: BSBCNV506 - Establish and manage a trust account

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

BSBCNV506 - Establish and manage a trust account

What evidence can you provide to prove your understanding of each of the following citeria?

Review trust account for compliance with trust account requirements

  1. Clearly identify, accurately record and continuously update practice trust account requirements in line with relevant legislation and regulations
  2. Develop policies and procedures for accurate trust account-keeping which comply with trust account requirements, key principles of accounting and financial management, and legislative requirements
  3. Identify and apply criteria for evaluating electronic and manual trust accounting systems to ensure compliance with all trust account requirements
Clearly identify, accurately record and continuously update practice trust account requirements in line with relevant legislation and regulations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop policies and procedures for accurate trust account-keeping which comply with trust account requirements, key principles of accounting and financial management, and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and apply criteria for evaluating electronic and manual trust accounting systems to ensure compliance with all trust account requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish and manage trust accounts

  1. Identify and access source documents for trust transactions in line with legislative requirements
  2. Produce documentation of trust records and transactions to give an accurate record of practice transactions on behalf of clients
  3. Ensure transactions are supported by appropriate authorisation and documentation and are in line with practice and legislative requirements
  4. Promptly and accurately record entries and transactions in line with relevant trust account requirements, and provide on demand as required
  5. Promptly follow up discrepancies in entries or documentation to ensure clarification or resolution and report to relevant authorities where necessary
  6. Check audit and security arrangements to ensure they provide adequate protection for client confidentiality and client funds held in trust
Identify and access source documents for trust transactions in line with legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Produce documentation of trust records and transactions to give an accurate record of practice transactions on behalf of clients

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure transactions are supported by appropriate authorisation and documentation and are in line with practice and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Promptly and accurately record entries and transactions in line with relevant trust account requirements, and provide on demand as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Promptly follow up discrepancies in entries or documentation to ensure clarification or resolution and report to relevant authorities where necessary

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Check audit and security arrangements to ensure they provide adequate protection for client confidentiality and client funds held in trust

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Manage and control trust accounts

  1. Authorise and manage disbursements between trust and office accounts within agreed practice protocols and legislative requirements
  2. Make appropriate arrangements with third parties and other professionals to ensure that practice trust accounts comply with legislative requirements
  3. Disseminate or make readily available practice trust administration policies and procedures to relevant staff in line with practice and legislative requirements
  4. Provide ongoing training for relevant practice staff to ensure efficient operation of trust accounts and financial and IT systems, and compliance with practice and legislative requirements
  5. Develop and implement procedures for monitoring records and ensuring the security of trust account records
Authorise and manage disbursements between trust and office accounts within agreed practice protocols and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Make appropriate arrangements with third parties and other professionals to ensure that practice trust accounts comply with legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Disseminate or make readily available practice trust administration policies and procedures to relevant staff in line with practice and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide ongoing training for relevant practice staff to ensure efficient operation of trust accounts and financial and IT systems, and compliance with practice and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop and implement procedures for monitoring records and ensuring the security of trust account records

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor and review trust accounts

  1. Regularly review documentation and other reporting requirements for compliance with legislative requirements
  2. Regularly check and monitor trust account entries and transactions to ensure compliance with practice and legislative requirements
  3. Monitor trust account transactions to ensure appropriate authorisation is obtained prior to any disbursements
Regularly review documentation and other reporting requirements for compliance with legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Regularly check and monitor trust account entries and transactions to ensure compliance with practice and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor trust account transactions to ensure appropriate authorisation is obtained prior to any disbursements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Authorise and verify trust accounts

  1. Verify periodic reconciliation in compliance with legislative requirements
  2. Prepare and discuss periodic financial reports with clients to ensure continued accuracy
  3. Maintain records for convenience and proper auditing
  4. Meet legislative audit requirements
Verify periodic reconciliation in compliance with legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare and discuss periodic financial reports with clients to ensure continued accuracy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain records for convenience and proper auditing

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Meet legislative audit requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1 Review trust account for compliance with trust account requirements

1.1 Clearly identify, accurately record and continuously update practice trust account requirements in line with relevant legislation and regulations

1.2 Develop policies and procedures for accurate trust account-keeping which comply with trust account requirements, key principles of accounting and financial management, and legislative requirements

1.3 Identify and apply criteria for evaluating electronic and manual trust accounting systems to ensure compliance with all trust account requirements

2 Establish and manage trust accounts

2.1 Identify and access source documents for trust transactions in line with legislative requirements

2.2 Produce documentation of trust records and transactions to give an accurate record of practice transactions on behalf of clients

2.3 Ensure transactions are supported by appropriate authorisation and documentation and are in line with practice and legislative requirements

2.4 Promptly and accurately record entries and transactions in line with relevant trust account requirements, and provide on demand as required

2.5 Promptly follow up discrepancies in entries or documentation to ensure clarification or resolution and report to relevant authorities where necessary

2.6 Check audit and security arrangements to ensure they provide adequate protection for client confidentiality and client funds held in trust

3 Manage and control trust accounts

3.1 Authorise and manage disbursements between trust and office accounts within agreed practice protocols and legislative requirements

3.2 Make appropriate arrangements with third parties and other professionals to ensure that practice trust accounts comply with legislative requirements

3.3 Disseminate or make readily available practice trust administration policies and procedures to relevant staff in line with practice and legislative requirements

3.4 Provide ongoing training for relevant practice staff to ensure efficient operation of trust accounts and financial and IT systems, and compliance with practice and legislative requirements

3.5 Develop and implement procedures for monitoring records and ensuring the security of trust account records

4 Monitor and review trust accounts

4.1 Regularly review documentation and other reporting requirements for compliance with legislative requirements

4.2 Regularly check and monitor trust account entries and transactions to ensure compliance with practice and legislative requirements

4.3 Monitor trust account transactions to ensure appropriate authorisation is obtained prior to any disbursements

5 Authorise and verify trust accounts

5.1 Verify periodic reconciliation in compliance with legislative requirements

5.2 Prepare and discuss periodic financial reports with clients to ensure continued accuracy

5.3 Maintain records for convenience and proper auditing

5.4 Meet legislative audit requirements

Required Skills and Knowledge

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1 Review trust account for compliance with trust account requirements

1.1 Clearly identify, accurately record and continuously update practice trust account requirements in line with relevant legislation and regulations

1.2 Develop policies and procedures for accurate trust account-keeping which comply with trust account requirements, key principles of accounting and financial management, and legislative requirements

1.3 Identify and apply criteria for evaluating electronic and manual trust accounting systems to ensure compliance with all trust account requirements

2 Establish and manage trust accounts

2.1 Identify and access source documents for trust transactions in line with legislative requirements

2.2 Produce documentation of trust records and transactions to give an accurate record of practice transactions on behalf of clients

2.3 Ensure transactions are supported by appropriate authorisation and documentation and are in line with practice and legislative requirements

2.4 Promptly and accurately record entries and transactions in line with relevant trust account requirements, and provide on demand as required

2.5 Promptly follow up discrepancies in entries or documentation to ensure clarification or resolution and report to relevant authorities where necessary

2.6 Check audit and security arrangements to ensure they provide adequate protection for client confidentiality and client funds held in trust

3 Manage and control trust accounts

3.1 Authorise and manage disbursements between trust and office accounts within agreed practice protocols and legislative requirements

3.2 Make appropriate arrangements with third parties and other professionals to ensure that practice trust accounts comply with legislative requirements

3.3 Disseminate or make readily available practice trust administration policies and procedures to relevant staff in line with practice and legislative requirements

3.4 Provide ongoing training for relevant practice staff to ensure efficient operation of trust accounts and financial and IT systems, and compliance with practice and legislative requirements

3.5 Develop and implement procedures for monitoring records and ensuring the security of trust account records

4 Monitor and review trust accounts

4.1 Regularly review documentation and other reporting requirements for compliance with legislative requirements

4.2 Regularly check and monitor trust account entries and transactions to ensure compliance with practice and legislative requirements

4.3 Monitor trust account transactions to ensure appropriate authorisation is obtained prior to any disbursements

5 Authorise and verify trust accounts

5.1 Verify periodic reconciliation in compliance with legislative requirements

5.2 Prepare and discuss periodic financial reports with clients to ensure continued accuracy

5.3 Maintain records for convenience and proper auditing

5.4 Meet legislative audit requirements

Range Statement

This section specifies different work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included.

Electronic or manual trust accounting system must take into account, the following factors:

administrative systems

Australian Accounting Standards and codes of practice

bookkeeping

disclosure and reporting requirements

electronic funds management including transfer/deposit/verification

ethical requirements

electronic conveyancing – legislation, regulations and codes of practice

legislative and regulatory requirements

office routines

security requirements

trust account procedures.