Real Estate Trust Audit 2016

Have you reviewed the prior year audit file?

Have you sighted the annual Company Statement from ASIC.

Have you checked ABN registration on the public register?

Do you have details for Schedule 1

Have we received the bank confirmation?

a.1 (C 35) Are trust records and book entries made in English?

a.2 (C 22(2)) Are trust records kept at the registered office?<br>List all trust accounts held during the year on Schedule 1 of the report

a.3 (C 22) Are there any branch offices?

a.4 Does the branch office operate a separate trust account?<br>

a.5 Are trust accounts, if the Licensee Entity is a corporation, in the name of the corporation and, in any other case, in the name of the licensee or of the firm of the licensees of which the licensee is a member?

a.6 (S86(3)) Do the words "Trust Account" appear in the name of the trust account and in the description of the trust account in the books and records and also on all cheques drawn on the trust account?

a.7 (S103,S104, Reg Parts 4&5) Have the appropriate Licensee Entity records been provided for the purposes of undertaking the audit of the trust accounts?

b.1 Does the Licensee Entity maintain any trust records by means of a computer system?<br>

b.3 Does the computer comply with system controls as prescribed in the Clause?

c.1 Do statements of account contain particulars of the money received, disbursed and the balance remaining with the Licensee Entity?

c.2 (S86(1), S54,S55, C.12, C.13, Sch 7, Sch 12-14, S57) Are the commissions disbursed, costs incurred and sums reimbursed in accordance with instructions?

c.3 Are the disclosure of rebates, discounts and commissions received from other parties, where occurring, contained in the agency agreements [this requirement does not apply to commercial land transactions]?

Does the commission rate in the contract agree with client statements?

d.1 (C.21) Is Trust Money banked in accordance with the Clause?

d.2 (C.27(1)(a)) Is the bank deposit book or other written bank record produced to the financial institution when the deposit is made?

d.3 (C.27(1)(a)) Is the bank deposit book or other written bank record produced to the financial institution in compliance with the Clause?

e.1 C.25(1) Are trust receipts prepared when the Licensee Entity receives the trust money?

e.2 C.25(2)-(8) Do trust receipt records comply with all the provisions of the Clause?

Has the Receipt been correctly recorded?

f.1 C.26(1) Are the funds drawn from the trust account by way of a trust cheque and/or electronic transfer?

f.2 C.26(3) Are all cheques drawn in the numerical order of the series to which they belong?

f.3 Are all cancelled cheques retained?

f.4 C.26(2)-(4) Are trust cheque payments & particulars in accordance with the Clause?

f.5 C.26(5) Are electronic funds payments & particulars in accordance with the Clause?

Has the payment been correctly recorded?

g.1 C.28(1)-(4) Does the Licensee Entity maintain a record of trust account transactions that records daily trust receipts and payment transactions that would constitute a cash book in accordance with the Clause?

g.2 C28(3)-(4) Is the daily record of the particulars of money in and out of the trust account entered as soon as practicable after the receipt or payment of the money?

g.3 C.28(5) Is the cash book balanced at the end of each month and carried forward in accordance with the Clause?

Does the opening cash book balance agree with the previous month closing balance?

Do the amounts for payments and receipts for the month agree with supporting reports?

Are there any outstanding cheques older than 30 days?

h.1 C.28(6), C.30(1), C.31(2)(d) Does the licensee, at the end of the month, prepare a statement reconciling the balance of the Licensee Entity's trust account with the balance of the related cash book?

h.2 Do reconciliation statements accurately reflect the reconciliation of the balance(s) of the trust account(s) with the balance(s) of the cash book?

Does the cash book balance agree with the trust ledger balance

I.1 C.29(1) For each trust account, has the Licensee Entity effected any transfers between accounts in the trust account ledger that are not effected by cheque or electronic funds transfer?

I.2 C29(2)-(3) If "Yes" to Item I.1.<br>Is the journal maintained for each trust account/s that is in accordance with the requirements of the Clause?

j.1 C.23(1) Does the agent keep either <br>- A single trust account ledger that is in the form permitting each account for an owners corporation, community association, precinct association or neighbourhood association to be physically removed from the ledger?<br><br>OR<br><br>- A separate trust account ledger for each owners corporation, community association, precinct association or neighbourhood association that is in a form that permits it to be physically removed from the ledger?

j.2 C.23(2) Does each ledger kept for an owners corporation, community association, precinct association or neighbourhood association contain sufficient information to enable the name of the entity for which it is kept to be identified?

k.1. C30(1) Does the Licensee Entity maintain a separate ledger account for each principal?

k.2 C.30(2)-(3) Are those ledger accounts in accordance with the requirements of the Clause?

l.1 C19(1). Has the licensee opened a trust account in accordance with section 86(4) of the Act and provided the authorised deposit-taking institution, at the time of making the application to open the account, with a unique identifying number obtained from the Office of Finance and Services?

I.2 C19(2) Has the trustee who maintains a trust account opened on or before 31 December 2014, in accordance with section 86(4) of the Act, provided the authorised deposit-taking institution with a unique identifying number obtained from the Office of Finance and Services before 1 July 2015?

m.1 S32 In accordance with Section 32(4) requirements 1&2 are, if applicable, the required written procedures, checklist or review system in place and, that in accordance with requirement 6 is documented and evidences regular use and maintenance of the required documentation in accordance with those requirements?

n.1 C.31. Have trust trial balances been prepared within 21 days after the end of each month and in accordance with the Clause?

n.2. S86(1)/S88 Do any trust accounts show debit balances or otherwise indicate a deficiency of trust funds to pay trust creditors at any time?

n.3 Have all those debit balances or the indicated deficiencies been rectified as soon as practicable after the time when the deficiencies should have become apparent?

n.4 Are details of the accounts concerned, the duration of the debit balances and the method of restoration (if applicable) outlined for the particular account(s) in the auditor's report ?

n.5 S89 Have all overdrafts on trust bank statements of the general trust account(s), identified under n.2 above, been notified to NSW Fair Trading within five (5) days of the licensee becoming aware of the overdraft?

n.6 For the trust account(s) that list debit balances or otherwise indicate a deficiency of trust funds to pay trust creditors in the audit year, have a copy of the appropriate trust bank reconciliation statement(s) and trial balance(s) ( incorporating the list of ledger accounts of principals that moneys are held for) of the effected accounting periods and for the final end of the auditing period in respect of the effected trust accounts been enclosed with the auditor's report? If not, list reasons in Schedule 2 and/or 3 of the report.

n.7 S86(4) Have you sighted a copy of Trust Account Notice(s) (Blue Form) in respect of the general account(s) and applicable separate account(s) that were opened during the audit period that have been endorsed by the authorised deposit-taking institutions, at the time of opening of the account(s), requiring interest payment to be credited to the department Statutory Interest Account?

Are you sure there are no debit balances?

Does the trust trial balance agree with the monthly bank reconciliation?

Have you ensured there are no items in suspense?

p.1 C39 Either<br>If the trust money is held in a separate trust account kept for the owners corporation or association - at least once every 6 months?

Or..<br>If the money is not held in a separate trust account kept for the owners corporation or association - at least once every 3 months?

Or..<br>If the agent ceases to act as managing agent for the owners corporation or association - within 14 days after termination of the agency agreement?

Have all breaches been recorded on Schedule 2?

Have you provided an audit report to the Licensee and, in the case of a qualified report only, a copy to Fair Trading within 14 days after providing the report to the Licensee.