Trust Accounting Management Online Resource

Disclaimer

The Trust Accounting Management Online Resource (TAMOR) content has been developed to assist practitioners apply the relevant legislation in daily practice, with relevant narrative and best practice. It is the central information point for all matters relating to trust accounting. The TAMOR content does not replace the legislation or common law.

The Law Society advises accessing these resources directly on our website instead of printing or downloading them. As soon as content is printed, it is deemed out of date. This ensures you always have the latest updates from the Ethics and Practice Law Practice Compliance Investigators, who frequently revise sections to reflect changes in practice, approach, and legislation.

There are two resources available through TAMOR and you can use the keyword search function below to search both TAMOR resources.

The Practice Matters resource which contains critical information to assist in the management of processes and reporting requirements when dealing with trust money, from getting properly set up with a trust bank account to closing down a legal entity, and everything in-between.

Access the Practice Matters Resource here

The Trust Accounting resource which is a complete guide to receiving, holding and disbursing trust money including record keeping instruments.

Access the Trust Accounting Resource here

28/11/2024

External Examinations and Examiners

Law practice end of financial year requirements include completion of the Statement Regarding the Receipt or Holding of Trust Money and may include an external examination of the accounts and records by a Designated Person.

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28/11/2024 12:00:00 AM

18/11/2024

Investments

A law practice can invest funds for a client if lawfully directed to do so. Knowing limitations and avoiding unnecessary risks is critical for the law practice and to protect trust money.

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18/11/2024 12:00:00 AM

18/11/2024

Reconciliations

Reconciling the trust bank account is a critical control which should highlight all errors or omissions made while recording any information in any of the books of account or made in the trust bank account during the preceding month. This time sensit

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18/11/2024 12:00:00 AM

18/11/2024

Legal Practitioners Combined Trust Account

Law practices are required to conduct a CTA calculation twice in each year to determine whether a deposit is required to be made to the CTA. Failure to meet this key requirement may result in interest liabilities.

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18/11/2024 12:00:00 AM

15/11/2024

Controlled Money

Controlled money is trust money a law practice must deposit into a specific account as directed by a client in writing, with exclusive control, distinct from a general trust bank account.

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15/11/2024 12:00:00 AM

15/11/2024

Trust Money Definition and Legislation

The provisions of the South Australian legislation and regulations relating to trust money and trust accounts standardise the records required to be kept by practitioners.

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15/11/2024 12:00:00 AM

15/11/2024

Power Money

Legal practitioners who are executors, attorney’s, trustees, or guardians other than in a private and personal capacity, have specific requirements to ensure proper trust records are maintained of all financial dealings.

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15/11/2024 12:00:00 AM

15/11/2024

Receiving Trust Money

A law practice receives money when it gains possession or control directly, indirectly or through an associate. There are various ways in which trust money can be received, affecting clearance times, and each carrying risk.

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15/11/2024 12:00:00 AM

15/11/2024

Payment Requirements - Paying Money from General Trust

A law practice may only permit payments to be made from the general trust bank account by cheque or by electronic funds transfer (EFT) to another bank account.

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15/11/2024 12:00:00 AM

15/11/2024

Payment Requirements - Making Payments to Court

General Trust Bank Accounts (Statutory Deposit Accounts) are not permitted to have credit or debit card functionality. The law practice therefore has two options in making payments of Court fees via the electronic CourtSA System.

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15/11/2024 12:00:00 AM

15/11/2024

Deposits

A law practice that receives trust money for deposit to the general trust bank account, must deposit the funds without delay and retain proper records of the deposit.

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15/11/2024 12:00:00 AM

15/11/2024

Payment Requirements - Making Payments by EFT

Law practices may facilitate payments of trust money using EFT (using BSB and Account Number), including BPAY (using the BPAY Biller Code and BPAY reference number), and PayID (using a PayID nominated by the payer), but only via internet banking, not

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15/11/2024 12:00:00 AM

15/11/2024

Receipting Trust Money

Discover the essential information a law practice must capture when preparing a trust receipt for all trust money received that is to be paid into a general trust bank account or controlled money account.

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15/11/2024 12:00:00 AM

15/11/2024

Trust Ledgers

The individual trust ledger account is a key accounting document that contains all transactions (receipts, payments, and transfer journal entries) relating to the one client matter and provides a detailed financial history of that matter.

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15/11/2024 12:00:00 AM

15/11/2024

Payment Requirements - Making Payments by Trust Cheque

Trust cheques must be crossed (two parallel lines) and marked, “Not Negotiable,” to prevent mis-use.

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15/11/2024 12:00:00 AM

15/11/2024

Payment Requirements - Billing and the No Profit Rule

A bill may be in the form of a lump sum or an itemised bill.

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15/11/2024 12:00:00 AM

15/11/2024

Trust Account Statements

A law practice is required to furnish a Trust Account Statement to each person for whom trust money is held, including power money, controlled money, investments, and funds in the general trust bank account.

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15/11/2024 12:00:00 AM

15/11/2024

Payments

Paying money and payments from the general trust bank account carries inherent risk and requires care and attention at every step. Proper authorisation, checks, balances, and controls can help reduce numerous risks. Complete records are essential to

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15/11/2024 12:00:00 AM

15/11/2024

Payment Requirements - Authority to Disburse

Authority to Disburse.

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15/11/2024 12:00:00 AM

15/11/2024

Journal Transfers and Transit Money

A law practice can internally transfer funds from one matter to another and deliver third party cheques to the payee when key requirements are met including proper authorisation and record keeping.

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15/11/2024 12:00:00 AM

15/11/2024

Payment Requirements - Flowcharts

Flowcharts to pay Third Party Disbursements from Trust, to pay Reimbursements of Disbursements from Trust and to pay Legal Costs from Trust, excluding Reimbursement of Disbursements

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15/11/2024 12:00:00 AM

15/11/2024

Cashbooks

Law practices must maintain a trust account cash receipts book and a cash payment book. A combined cashbook is acceptable if transactions are recorded in order and comply with the regulations. All law practice trust receipts and payments must be reco

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15/11/2024 12:00:00 AM

15/11/2024

Payment Requirements - Making Payment of Legal Costs from Trust

Regulation 45 states that legal costs may be withdrawn from a general trust account or a controlled money account by withdrawal with authority; withdrawal on issue of bill; or for reimbursement of money paid.

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15/11/2024 12:00:00 AM

14/11/2024

Trust Account Compromise

Discover essential steps to take immediately after a trust account compromise. Learn about effective preventative measures and how to support staff through the recovery process.

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14/11/2024 12:00:00 AM

22/10/2024

Outsourcing by Legal Practitioners

Legal practitioners must consider statutory and professional obligations when contracting third parties for client services. This advice introduced on 7 February 2023, outlines key considerations.

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22/10/2024 12:00:00 AM

22/10/2024

Trust Accounting Courses

The Society offers three online Trust Accounting courses for Members and Non-members, eligible for CPD points in Practice Management/Business Skills.

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22/10/2024 12:00:00 AM

21/10/2024

End of Day/Month/Year Practices

Daily and monthly routines for trust account management are essential for compliance. This includes recording transactions, reconciling accounts, and ensuring proper documentation and security.

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21/10/2024 12:00:00 AM

21/10/2024

Investigations and Contravention Notices

Contravention Notices (CN1, CN2, CN3) require corrective actions to prevent further issues. CN3 triggers immediate investigation. Law Practice Compliance Investigators ensure compliance and prevent fraud through routine and specific investigations

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21/10/2024 12:00:00 AM

21/10/2024

Changing Trust Bank Accounts (Intra-Firm Transfers)

When changing trust bank accounts, preserve the audit trail. Open a new account, transfer funds, manage the existing account, and close it properly. Concurrent accounts must be handled with care.

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21/10/2024 12:00:00 AM

21/10/2024

Trust Accounting Software

This documentation provides information about computerised trust accounting software programs and the regulatory requirements for computerised record keeping, including software compliance and keeping back ups.

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21/10/2024 12:00:00 AM

21/10/2024

Office Reconciliations

Regular reconciliation of the office account is crucial to ensure proper fund allocation and to avoid undetected trust funds. Monthly reconciliations are recommended to prevent regulatory contraventions.

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21/10/2024 12:00:00 AM

21/10/2024

Migration of Trust Data

Data migration of trust balances requires careful planning and supervision to ensure continued trust compliance and guard against errors or omissions.

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21/10/2024 12:00:00 AM

18/10/2024

Practice Lifecycle

Establishing a legal practice involves setting up a legal entity, meeting ILP requirements, using approved ADIs for trust accounts, and managing changes like ceasing to practice or closing accounts.

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18/10/2024 12:00:00 AM

18/10/2024

Irregularity Reporting

Serious trust account irregularities like fraud of misappropriation must be reported to the Society immediately. Legal practitioners have a statutory duty to report any irregularities promptly.

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18/10/2024 12:00:00 AM

16/09/2024

Current Regulation 56 Exemptions

In 2018, the Society adopted recommendations to ease regulatory burdens on practitioners, exempting law practices from specific requirements under Regulation 56 of the Legal Practitioners Regulations 2014.

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16/09/2024 12:00:00 AM

Further enquiries

As not all practice scenarios can be covered, practitioners are advised to contact Ethics and Practice via email [email protected] or on (08) 8229 0229 for further assistance when required.

Contact Ethics and Practice