Rules for the Attorney's Profession > Schedules > Fourth Schedule : Auditor's Report > (Third Part): Attorney's Annual Statement on Trust Accounts1

FOURTH SCHEDULE

(Third Part): Attorney's Annual Statement on Trust Accounts1

(On attorney’s letterhead)

The secretary

(INSERT NAME OF LAW SOCIETY]

Address

Date

Attorney’s Annual Statement on Trust Accounts2

This statement is in support of the below listed member(s) application for a Fidelity Fund Certificate for the <year/period> commencing <insert date> and ending <insert date>.

1. List of attorneys in firm / practice applying for annual Fidelity Fund Certificate3

2. Attorney’s compliance representations

I/we confirm that I/we have maintained the necessary accounting records4 as required in terms of sections 78(4) and 78(6) of the Attorney’s Act, No 53 of 1979 and the Uniform Rules and regulations of the relevant Provincial Law society for the ended <insert date>, inter alia:

(a)	The firm’s trust accounts have been updated monthly and balanced at least quarterly;

(b)	The firm complied/ has not complied with the service fee structure (including the cash deposit fee structure where applicable) and the credit interest rates, as amended from time to time, as nationally/provincially agreed upon between the Attorneys Fidelity Fund and the firm’s bank(s);

(c)	The ratio as a percentage of total bank charges (excluding VAT) incurred during the year to the total of interest earned during the year was <insert percentage>;

(d)	The firm’s trust accounts for the period subsequent to 2X February 20X2 have been written up to (insert date) and the trial balance was last balanced at <insert date> and in compliance with the provisions of <insert Rule X> read with <insert Rule X>;

(e)	The following changes in the composition of the firm occurred during the year or during the period from <insert date> to <insert date>:

(f)

The firm was issued with a valid fidelity fund certificate for the calendar year ended <insert financial period end> (i.e. the calendar year before the financial period/year of this report in the name of <insert the name of the attorney’s firm>), as required by <relevant Uniform Rules….,> Prohibition of rendering of services as attorneys in certain circumstances.

(g)	The firm is registered as an Accountable Institution in accordance with section 43B of the Financial Intelligence Centre Act, Act No. 38 of 2001 with accountable institution registration reference number:<insert number> that was issued by the Financial Intelligence Centre.

(h)	The firm <has/has not> complied with the requirements of section 21 of the Financial Intelligence Centre Act, Act 38 of 2001 "Identification of clients and other persons when establishing a business relationship or conducting a single transaction with a client".

(i)

The firm <has / has not> reported <insert number> cash transactions (received or paid) above the prescribed limit to the Financial Intelligence Centre for the period reported on in accordance with the requirements of Section 28 (of the Financial Intelligence Centre Act, Act No. 38 of 2001FICA, “Cash transactions above prescribed limit”.

(j)

The firm <has / has not> reported <insert number> property associated with terrorist and related property reports to the Financial Intelligence Centre for the period in accordance with the requirements of section 28A of the Financial Intelligence Centre Act, Act No. 38 of 2001. “Property associated with terrorist and related activities”.

(k)	The firm <has / has not> reported <insert number> suspicious and unusual transactions to the Financial Intelligence Centre for the period in accordance with the requirements of section 29 of the Financial Intelligence Centre Act, Act No. 38 of 2001. “Suspicious and unusual transactions”.

(l)

The firm <has / has not> formulated and implemented internal rules in terms of section 42 of the Financial Intelligence Centre Act, Act No. 38 of 2001 which includes the requirement to report cash threshold transactions (section 28) and suspicious and unusual transactions (section 29) to the Financial Intelligence Centre.

3.	Places of practice

(a)	At the date of this report, the firm’s principal place of practice is that given in the letterhead and the firm’s South African offices are situated at <insert full physical addresses5>:

4. Information extracted from the trust accounting records

Reconciliation of interest earned on the firm’s section 78(1) and section (2)(a) trust accounts from 1 March 20XX to 2X February 20XX:

(i)	Amount brought forward from the previous financial year in respect of interest earned on monies deposited in terms of section 78(1) and monies invested in terms of section 78(2)(a) of the Attorneys Act, No. 53 of 1979
(ii)	Amount earned during the current period on monies deposited in trust banking accounts in terms of section 78(1) and monies invested in trust investment accounts in terms of section 78(2)(a) of the Attorneys Act, No 53 of 1979
(iii)	Amount incurred during the current period in respect of refundable bank charges (excluding VAT – firms not liable for Vat as vendors may include VAT)
(iv)	Amount already paid over to the Law society as nominee of the Attorneys Fidelity Fund during the period under review in terms of section 78(3) of the Attorneys Act, No. 53 of 1979 is: (a schedule of the payments made is to be attached)
(v)	Amount carried over to the next financial period in respect of interest earned on monies deposited in terms of section 78(1) and monies invested in terms of section 78(2)(a) of the Attorneys Act, No. 53 of 1979

(vi)	The amount referred to in paragraph 4(v) agrees/ does not agree6 with the balance as recorded in the books of account, which amount, less the amount of R__________ paid over to the society since period end, <is/ is not> held in the firm’s trust account.

If not held in the trust account, a written explanation detailing how the trust interest has been dealt with is to be annexed to the report.

(vii)

The following information was extracted from our trust accounting records that were the subject of our auditor’s assurance engagement in respect of trust creditors/liabilities and trust funds available at the period / year end <insert date> and on one other date, selected by our auditor <insert date>, were as follows:

TOTAL TRUST CREDITORS / LIABILITIES	Local	Foreign7	At period end8	At year end
Trust creditors/liabilities
Trust creditors in terms of:
- Section 78(1)
- Section 78(2)(a)
- Section 78(2A)
- Interest
Trust creditors in terms of estates9
Trust creditors in terms of other entrusted assets10
TOTAL TRUST CREDITORS / LIABILITIES

Trust funds available in terms of trust banking accounts:
- Section 78(1)
- Section 78(2)(a)
- Trust cash on hand
- Interest
Trust funds and assets relating to estates
Other entrusted assets11
Debit balances in trust ledger12
TOTAL FUNDS
TRUST SURPLUS / (DEFICIT)13

5. Investment practice

The firm:

(i)	Has/ has not carried on the business of an investment practice during the year under review;

(ii)	Has/ has not complied14 in all respects with the provisions of <rule 36> of the Uniform Rules;

(iii)

The firm <is / is not> registered as a Financial Services Provider (FSP) with the FAIS Department of the Financial Services Board.

…………………………....................................

<Sole Practitioner/Partners/Directors>15

1	To be attached to the auditor’s Report on the Attorney’s Trust Accounts to be submitted to the relevant Provincial Law society

2	To be attached to the auditor’s report on the Attorney’s Trust Accounts to be submitted to the relevant Provincial Law society

3	Attach separate list if there are numerous partners / directors in the attorneys’ firm or practice.

4	Accounting records include those for trust liabilities in respect of which the practitioner is the executor, trustee or curator or which he administers on behalf of the executor, trustee or curator.

5	Attach as a separate list if the firm has multiple offices in South Africa.

6	If the answer to paragraph 4(vi) is: “does not agree”, list all instances in which the Rules may not have been complied with. (If space is insufficient, this may be continued on a separate sheet and attached to this assurance report).

7	Attach a detailed schedule of liabilities per foreign currency per category, in the same format, and convert to Rand at the reporting date.

8	The date selected, by the auditor, must be a date, other than the financial year end, which occurs during the financial year / period to which this assurance engagement relates.

9	This is trust liabilities in respect of which the practitioner is the executor, trustee or curator or which he administers on behalf of the executor, trustee or curator for which consent has been obtained from the Master of the High Court to deal with through the attorney’s trust account.

10	This relates to the liability originating from any asset entrusted to the practitioner other than the items listed, supported by a detailed schedule of the nature of such liability.

11	Assets entrusted to the practitioner other than the trust funds items listed.

12	Details of debit balances in the trust ledger must be provided as an attachment to the report providing reasons for the occurrence and how it was resolved.

13	Detailed explanation required on how the surplus / deficit originated and how it was subsequently cleared and resolved. Indicate when the deficit was reported to the Law society.

14	If the answer to paragraph 5(ii) is: “has not complied”, list all instances in which the Rules may not have been complied with. (If space is insufficient, this may be continued on a separate sheet and attached to this assurance report).

15	Delete whichever is not applicable. For practices with a large number of partners / directors this "Attorneys Annual Statement on Trust Accounts" should be signed by the partner / director authorised by the Partnership / Board of the Inc.

Attorneys Act, 1979 (Act No. 53 of 1979)

Rules for the Attorneys' Profession

Schedules

Fourth Schedule : Auditor's Report

(Third Part): Attorney's Annual Statement on Trust Accounts1