Trust accounts

1.1   Demonstrate understanding: 

• 1.1.1 of the difference between a Trust account, Service Nova Scotia trust account and General Account 
• 1.1.2 of the meaning “trust property” (1.1.1(cc)) 
• 1.1.3 of the meaning of “trust money” (1.1.1 (bb)) 
• 1.1.5 the rules for naming a Trust account (10.5.2)
• 1.1.6 the requirement for a Trust account (10.2.4) 
• 1.1.7 how service charges should be addressed 

1.2   Outline the Trust Account Opening Process 

• 1.2.1 Identify who must be contacted to open a Trust Account 
• 1.2.2 Identify the requirements that must be met to open a Trust Account 
• 1.2.3 Explain the trust account opening process

2.1   Deposits 

• 2.1.1 Demonstrate an understanding of what should be deposited in a Trust account (10.2.1) 
• 2.1.2 Identify the requirements for handling cash over $7500.00 (4.12) 
• 2.1.3 Demonstrate an understanding that only trust money can be deposited and held in a Trust account (10.2.6, 10.2.7) 
• 2.1.4 Identify the timing related to the deposit of trust funds (10.2.3) 
• 2.1.5 Explain how the receipt of items in trust is documented (10.4.2 (a)) 
• 2.1.6 Explain how trust funds being held for more than 30 days are to be handled 
• 2.1.7 Describe the duty to supervise (10.2.10) 

2.2     Withdrawals 

• 2.2.1  Identify that all withdrawals must be to a named payee (10.3.5(a)) 
• 2.2.2  Explain the requirements for the authorization of the withdrawal of trust funds (10.3.5) 
• 2.2.4  Identify the requirements for electronic fund transfers 
• 2.2.5 Demonstrate an understanding of the manner in which trust funds cannot be withdrawn (10.3.6) 

3.1   Required Records 

• 3.1.1 Demonstrate an understanding of the required books and ledgers for a trust account (10.4.2 (a), (b), (c), (j) and (i)) 
• 3.1.2 Demonstrate an understanding of the required records for trust property (10.4.2(d)) 
• 3.1.3 Demonstrate an understanding of the required records for a general account (10.4.2 (e) and (f)) 
• 3.1.4 Demonstrate an understanding of the required records for billings and other charges to clients (10.4.2(g)) 

3.2     Maintenance of Records 

• 3.2.1 Explain what records must be retained 
• 3.2.2 Identify how long records must be retained (10.4.1 (c)) 
• 3.2.3 Demonstrate an understanding of when records should be updated (10.4.1.(b)) 
• 3.2.4 Perform record-keeping in a simple set of manual trust books of account 
• 3.2.5 Perform a simply bank reconciliation 
• 3.2.6 Prepare a list of client trust ledger balances from a simple set of manual trust books of account 
• 3.2.7 Review all records prepared by others 

4.1   Demonstrate understanding of: 

• 4.1.1 the purpose of a SNS trust account (10.5.3 and 10.5.4) 
• 4.1.2 how a SNS trust account is named (10.5.2) 
• 4.1.3 what funds can be deposited to a SNS trust account 
• 4.1.4 the requirement to deposit recording fees and deed transfer tax funds in trust 
• 4.1.5 the process for the withdrawal of funds for the SNS trust account (10.5.5 – 10.5.13) 
• 4.1.6 the authority to delegate (10.5.14) 

4.2   Maintenance of Records 

• 4.2.1 List the records to be printed and reviewed (10.5.9 – 10.5.12) 
• 4.2.2 Identify which records must be retained (10.5.13) 

5.1    Demonstrate an understanding of 

• 5.1.1 the definition of an overdraft (10.1.1(f)) 
• 5.1.2 the  requirement  to  maintain  sufficient  balances  in  trust  to  meet  all  trust obligations and to address overdrafts immediately (10.6.1) 
• 5.1.3 the requirement to report and provide a full explanation of applicable overdrafts immediately to the Executive Director of the Society (10.6.3) 
• 5.1.4 the need to correct errors without delay (10.6.2) 

5.2   Identifying and Addressing Overdrafts 

• 5.2.2 Explaining the process to rectify overdrafts 

6.1   Investigation Process 

• 6.1.1 Identify who can initiate an investigation/audit (10.7.1) 
• 6.1.2 Explain when an investigation/audit can be initiated (10.7.2) 
• 6.1.3 Demonstrate an understanding of what documents must be produced (10.7.4) 
• 6.1.4 Explain the overall investigation/audit process (10.7.5 and 10.7.6) 
• 6.1.5 Demonstrate an understanding of the ramifications of non-compliance (10.7.7)