Trust account handbook - Department of Commerce - wa.gov.au

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Please note, where information is not available, an agent is to state ‘unknown’ on the covering letter. Agents should be aware that it is a requirement of section 49 of the Act to keep full and accurate records of all money received and paid. For further details, please refer to the unclaimed monies section of the Department of Treasury website at www.treasury.wa.gov.au/UnclaimedMoney 26 SETTLEMENT AGENTS’ TRUST ACCOUNT HANDBOOK
PART 4. PREVENTING THEFT AND FRAUD 4.1 Early indicators of theft and fraud As in any other business, theft and fraud can occur from within a settlement agency. In the majority of cases, these acts are committed by an employee of an agency and often the person in bona fide control is not aware of the activities of the perpetrator. Commercial criminals are likely to identify and target organisations perceived as ‘soft’ targets. A proactive approach to prevention is essential and there are certain tools and techniques available to make an agency a ‘hard target’ (eg advise staff on induction that it is agency policy to refer all criminal issues to the police). It is in the interests of the agency and, in particular, the person in bona fide control to ensure that proper control and supervision of all staff takes place. The person in bona fide control has strong legal responsibilities in relation to the protection of trust account money. The agent could even be held responsible for reimbursing money misappropriated by employees.The person in bona fide control can help limit the possibility of theft and fraud of trust funds, and other money, by putting in place some internal controls and early indicators. If one or more of the following seems familiar, the agency could have a problem: • missing original supporting documents for transactions; • unaccounted for/missing receipts; • altered documents; • outstanding or incomplete account reconciliations; • complaints from clients about delays in receiving money; • long-term unpresented cheques; • balances held in client trust accounts for a long period of time; • deteriorating financial position of the agency; or • auditor’s access to people or information in the agency is restricted. Agents cannot rely solely on statutory appointed auditors to identify theft and fraud in their agency. A misappropriation may occur well before an annual audit is performed. The auditor also relies on the accounting work within the agency, which may have been falsified by the perpetrator. It is recommended that agents discuss internal control mechanisms with their auditor. Some common measures that can be carried out by the person in bona fide control include: 27 • making periodic checks on the work of employees; • involving themselves in bank reconciliations; • maintaining control over cheque books and receipt books; • understanding and operating the computer system; and • following-up on outstanding cheques and client balances. Encouraging a ‘whistle-blowing’ culture within the agency can also be an effective and relatively cheap way to encourage honest employees report suspicions of theft or fraud to their superiors. SETTLEMENT AGENTS’ TRUST ACCOUNT HANDBOOK
Page 1 and 2: Government of Western Australia Dep
Page 3 and 4: Table of Contents Introduction.....
Page 5 and 6: Introduction The Settlement Agents
Page 7 and 8: 1.5 Types of trust accounts General
Page 9 and 10: 1.10 What trust documents and recor
Page 11 and 12: The following calculation can be us
Page 13 and 14: PART 2 TRUST DOCUMENTS AND RECORDS
Page 15 and 16: cross-referenced against the interi
Page 17 and 18: • amount received; and • the to
Page 19 and 20: 2.8 Buffer account Agents sometimes
Page 21 and 22: Regular monitoring of trust account
Page 23 and 24: Example: Trust account reconciliati
Page 25 and 26: 3.3 What are an agent’s responsib
Page 27: As well as advising Consumer Protec
Page 31 and 32: everse the transaction. Agents shou
Page 33 and 34: GLOSSARY Act (The) The Settlement A
Page 35: Department of Commerce Consumer Pro

Trust account handbook - Department of Commerce - wa.gov.au

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