Document ID: chunk:federal_register_of_legislation:F2020L01668:body:0:p10
Version: federal_register_of_legislation:F2020L01668
Segment Type: other
Provision Reference: 
Character Range: 24628–27580

in addition to remuneration is not permitted. Administrators will therefore need to understand what constitutes genuine "out of pocket" expenses that, if detailed in the proposal and creditors agree, are able to be recovered directly from funds held in trust for an individual agreement as opposed to an overhead recoverable only through remuneration.

 (e) Handling and properly accounting for money

3.38 Money received under the debt agreement is considered to be held in trust for the benefit of the debtor and creditors. In general, an applicant will need to demonstrate both an understanding of, and have in place, proper money handling processes, records and controls including: data backup and contingency plans, basic book-keeping knowledge, correct banking processes, the ability to monitor unpresented and stale cheques, reconcile accounts and interest, monitor when dividends and fees are due and calculate and pay dividends and fees accurately.

3.39 Some of the specific elements to be considered are:

       * administrators are required to pay all money received from debtors under agreements to the credit of a single interest-bearing bank account that bears the administrator's name and the words "Debt Agreement Administration Trust Account"

       * administrators must only pay into these accounts money received from debtors under debt agreements

       * administrators must only pay money out of these accounts for the administration of the debt agreement, in accordance with the Act or a direction of the Court

       * administrators are entitled in their personal capacity to each payment of interest on the accounts, less the bank fees and charges (if any) paid or payable during the period that the interest relates. The interest is payable to the Commonwealth as a charge imposed by the Bankruptcy (Estate Charges) Act 1997

       * administrators must keep such accounts, books and records as are necessary to give a full and correct account of the administration of the debt agreement; and if required to do so by the Inspector-General, make those accounts and records available for inspection by the Inspector-General

       * when required, administrators must answer any inquiries about the debt agreement and cooperate with any inquiry or investigation made by the Inspector-General, including in relation to any conduct of the administrator prior to the lodgement of a proposal

       * if they are to be remunerated, the administrator must maintain a separate record of money received, payments made and the balance of money held in relation to each debt agreements and at least once every 45 days, reconcile the balance held in the bank account with these records

       * administrators must account for interest and bank charges.

3.40 The Inspector-General will assess an applicant's knowledge in these areas and their systems and practices. An applicant will need to maintain appropriate