Reconciliation (continued)

In effect, paragraph 2(1)(h) of the Rules, calls for a reconciliation of all trust funds that you hold for clients. This includes any specific trust accounts, any trust accounts where you acted as a custodian, or in any of the following capacities: an executor or administrator of a will, an administrator of an estate, a guardian or under a power of attorney.
Your internal office procedures regarding trust reconciliation should include:
  • diarising the date when trust account statements are due from your financial institution, and a system of follow-up to ensure statements are received in a timely fashion;
  • diarising the date of the monthly reconciliation; and,
  • a policy that ensures that any staff member who is involved in your accounting procedures understands that any errors or differences must be brought to your attention immediately, so that you can correct or reimburse trust balances as necessary.