Community Legal Services of Community Legal Services of Mid- -Florida, INC. Florida, INC. Mid Client Trust Account Policies Client Trust Account Policies and Procedures and Procedures
Introduction/ Agenda Introduction/ Agenda Review of Florida Bar Requirements Review of Florida Bar Requirements Review Client Trust Account Policies Review Client Trust Account Policies Review Client Trust Account Procedures Review Client Trust Account Procedures Review how to implement the order in Review how to implement the order in which all Client Trust Account policies and which all Client Trust Account policies and procedures are to be followed. procedures are to be followed. Review all forms related to the Client’s Review all forms related to the Client’s Trust Accounts Trust Accounts
Client Trust Account Client Trust Account Florida Bar Regulations Florida Bar Regulations The Rules of Professional Conduct The Rules of Professional Conduct make it mandatory for every law firm make it mandatory for every law firm in the State of Florida to maintain a in the State of Florida to maintain a trust bank account as a depository for trust bank account as a depository for clients’ funds and establish the clients’ funds and establish the Attorney's duties and responsibilities Attorney's duties and responsibilities in handling clients’ trust funds. in handling clients’ trust funds.
Client Trust Account Client Trust Account Florida Bar Regulations cont. Florida Bar Regulations cont. It is the responsibility of the Individual It is the responsibility of the Individual Attorney to be familiar with the rules. to be familiar with the rules. Attorney The rules can be found on the internet at The rules can be found on the internet at www.flabar.org. When there, click on the . When there, click on the www.flabar.org Regulations tab then click on the Rules Regulations tab then click on the Rules Regulating The Florida Bar tab. All of the Regulating The Florida Bar tab. All of the information on trust accounts is in chapter information on trust accounts is in chapter 5 5 5-1.1 Trust Accounts 5-1-2 Trust Accounting Record and Procedures
Client Trust Account Client Trust Account Florida Bar Regulations cont. Florida Bar Regulations cont. There are numerous rules governing trust There are numerous rules governing trust accounts. accounts. All of the rules require strict compliance. All of the rules require strict compliance. Penalties for non- -compliance are severe and may compliance are severe and may Penalties for non lead to disbarment. lead to disbarment. Maintenance of clear and concise records is Maintenance of clear and concise records is mandatory. mandatory. Each offices’ trust account ledger must be Each offices’ trust account ledger must be balanced monthly and is subject to an internal balanced monthly and is subject to an internal audit by the Comptroller at any time. audit by the Comptroller at any time. Administration will reconcile the trust account Administration will reconcile the trust account monthly. monthly.
CLSMF Client Trust Account CLSMF Client Trust Account Policies cont. Policies cont. The Attorney of Record will be responsible for The Attorney of Record will be responsible for receiving all funds, requesting disbursements, receiving all funds, requesting disbursements, and refunds to the client when the case is closed and refunds to the client when the case is closed or completed. or completed. The disbursements and refunds need to be The disbursements and refunds need to be handled as soon as possible. If after 7 years all handled as soon as possible. If after 7 years all attempts have been made to return the monies attempts have been made to return the monies to the client the balance will be escheated to the to the client the balance will be escheated to the State of Florida according to the laws of State of Florida according to the laws of Unclaimed Property. Unclaimed Property. CLSMF Client Trust Fund Policy and Procedure
CLSMF Client Trust Account CLSMF Client Trust Account Policies cont. Policies cont. Each CLSMF law office has access to the CTA and must Each CLSMF law office has access to the CTA and must follow all policies and procedures to ensure segregation follow all policies and procedures to ensure segregation of each client’s funds from other funds. of each client’s funds from other funds. The CLSMF Board of Directors authorizes the CTA and The CLSMF Board of Directors authorizes the CTA and appropriate signatories on the account. appropriate signatories on the account. The Managing Attorney of each office will designate a The Managing Attorney of each office will designate a Custodian to keep all checkbooks, deposit books, receipt Custodian to keep all checkbooks, deposit books, receipt books, client ledger sheets notebooks, and endorsement books, client ledger sheets notebooks, and endorsement stamp. stamp. All of the above mentioned materials need to be locked All of the above mentioned materials need to be locked at all times. at all times.
CLSMF Client Trust Account CLSMF Client Trust Account Policies cont. Policies cont. Using funds of one client for another client is strictly Using funds of one client for another client is strictly . forbidden . forbidden All client trust funds must remain separate from all other All client trust funds must remain separate from all other funds. funds. All funds need to be deposited and cleared before All funds need to be deposited and cleared before disbursements can be made. Generally 10 business disbursements can be made. Generally 10 business days for a personal check. days for a personal check. If disbursements need to be made before the personal If disbursements need to be made before the personal check will clear, the client will then need to make another check will clear, the client will then need to make another form of payment (i.e. cash, money order, certified form of payment (i.e. cash, money order, certified check). check).
Client Ledger Sheets Client Ledger Sheets CLI ENT LEDGER SHEETS Create Notebook Titled “Clients Ledgers Sheets – Open Cases” Use form # 1010-T (Client Ledger Sheet) One for each client Keep all forms # 1010-T in the notebook End
Community Legal Services of Mid-Florida, Inc. CLIENT LEDGER SHEET Client Name Address File Number Case Number Attorney Please create a form for each client and fill in information for each transaction and file in a "Client Ledger Sheets - Open Cases" notebook. When the case is closed, please move the client's ledger sheet to a "Client Ledger Sheets - Closed Cases" notebook. DISBURSE- M E N T CLIENT'S TRUST FUNDS DESCRIPTION DATE REQUEST NO. ($ OUT) ($ IN) Debit Credit Balance Form 1010-T
Trust Account Deposits Trust Account Deposits TRUST ACCOUNT When an client submits funds DEPOSI TS for deposit the following (Money Reception) procedures need to be Form # 1009-T (Receipt of Funds & followed. Authorization to Deposit/ Release Funds I nto/ From Client Trust Account) •Clear information •Client’s Signature •Attorney’s approval and signature Prepare Cash Receipt YES (Retain carbonless second If Cash copy in the Receipt Book) Copy # 1 Copy # 2 Copy # 2 Copy # 1 Copy of form # 1009-T form # 1009-T Cash Receipt Cash Receipt the Funds Give Copy 1 Give Original form # 1009-T Cash Receipt Place in the Client’s file: to Client to Client 1. Original form # 1009-T Give to the Custodian: 2. Copy of the Funds 1. Funds 3. If cash, copy # 1 Cash 2. Copy # 2 form # 1009-T Receipt 3. If cash, copy # 2 Cash Receipt End
Community Legal Services of Mid-Florida, Inc. RECEIPT OF FUNDS AND AUTHORIZATION TO DEPOSIT/RELEASE FUNDS INTO/FROM CLIENT TRUST ACCOUNT I, , hereby authorize Community Legal Services of Mid-Florida to deposit ($ ) into my Client Trust Account and to release funds from my account on my behalf. Office # Check Appropriate Boxes: $ Cash Client Signature Date $ Money Order $ Personal Check File # Case # $ Cashier's Check $ Certified Check Approval by Attorney of Record Date or Managing Attorney Additional Comments: Form 1009-T OFFICE NUMBERS 01-Orange (Orlando) 02-Lake (Tavares) 03-Osceola (Kissimmee) 04-Volusia (Daytona)
Trust Account Deposits 2 Trust Account Deposits 2 TRUST ACCOUNT DEPOSI TS (Custodian) YES Stamp CLSMF’s If Check endorsement NO Keep in a Daytona Admin Envelope: 1. Copy # 2 Cash Receipt (if applicable) 2. Copy # 2 form # 1009-T Complete bank’s deposit slip and make deposit in local SunTrust Bank Follow procedure under: (Acc. Num.: 100019888980) in the same MONTHLY BANK RECONCI LI ATI ON day or the next business day at the end of the month * Lock up funds at all times * Attach bank receipt to the carbonless copy in the Deposit Book Form # 1010-T (Client Ledger Sheet) Enter amount of check as ($ I N) credit Custodian should receive: Fill in other information 1. Funds 2. Copy # 2 form # 1009-T Form # 1011-T 3. Copy # 2 Cash Receipt (if cash) (Trust Account Transaction Log) Post Transaction End
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