Audits for the year ending 30 June 2021 must be lodged by 31 December 2021. This is an extension of the standard deadline of 30 September due to the pandemic.

As everyone should know- all Statutory Trust accounts need to be audited every year- Pandemic or Not! 

This week I’m looking at why things go wrong with a Trust account. There are fundamental things that you need to do ( or not do) to ensure that your next audit is not stressful:

  1. Make sure you are reconciling every week- Legislation says it must be done monthly, but all LIC should be on top of what is happening
  2. Make sure there is a proper backup. Ensure that your backup is done correctly and can be restored.
  3. Misallocating Trust funds- Yep, giving the wrong person the funds!
  4. Every LIC should know the position of the Trust account on an ongoing basis.
  5. Don’t Disperse funds BEFORE the Order on Agent has been received.
  6. You are not establishing Trust specific rules, policies, and procedures. Remember that a Policy manual is now needed at all agencies. Contact Leverage for your copy.
  7. Hiring the wrong person for the job. That person that cant add up should not be in charge of the Trust account. Only personnel who are capable, qualified, and authorised should have access to the records.

Leverage Academy- bringing you practical solutions to real-world issues.