Audits

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EXPERT OBSERVER
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The case for overhauling the planning, funding and delivery of infrastructure to meet the needs of modern, growing cities is the stark lesson of Infrastructure Australia’s Infrastructure Audit. 
I welcome the report as a frank assessment of the current deficiencies in the system. 
The alarm bells are ringing loudly about the nation’s capacity to deliver the infrastructure needed to underpin productive and liveable cities.
Population growth, demographic trends, technology and densification are fueling a radical transformation of our cities that is well underway and will continue to accelerate. 
However, the economic, social and environmental infrastructure that communities expect is lagging and we risk falling so far behind the curve that the gap will be unsustainable. 
The Government has unveiled some positive initiatives to plot a better way forward – new population forecasts, increased infrastructure pipelines and sharper analysis of housing supply and demand. 
These represent a sound first step but there is clear demand for an aggressive wave of reforms to lift infrastructure above politics and better connect land use, population growth, settlement patterns, housing supply and infrastructure delivery. 
This also requires a sharpened focus by the states and local government on responding to the issues raised by the report and working in smarter ways to respond to community needs. 
Policy inertia carries twin risks – failing to respond to the RBA’s call for a short-term stimulus to economic activity via infrastructure spending, and leaving our cities exposed to congestion in the long-term.
UDIA National’s Policy Priorities released in June contains a suite of recommendations to fix the approach to infrastructure, including: 
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An Infrastructure Accord that would insulate project identification, funding and delivery of significant infrastructure projects from partisan politics 
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Ensuring the business case for all major projects includes analysis of land use and housing opportunities to maximise the benefit of investment 
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Referencing the Priority List established by Infrastructure Australia as the baseline for decisions on prioritisation 
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Using the proposed new population forecasts to better inform strategic land use and infrastructure plans at a national, state and local level 
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Better assessing trunk infrastructure requirements needed to unlock housing opportunities that emerge from major transport projects 
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Providing financial incentives to the states to fund key infrastructure, including asset recycling and broadening the tax base
 
 
 
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<li>Reform the current mix of taxes, charges and levies imposed on new housing that both fail to provide new infrastructure and add to the housing affordability challenge.</li>
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CONNIE KIRK is the Urban Development Institute of Australia’s National Executive Director.
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jrobinson-rf4aSBido9

Infrastructure audit a call to action: UDIA's Connie Kirk

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Are you are an estate agent or conveyancer who manages a trust account? You must have the account audited for the 2015-16 financial year by an approved, independent auditor and provide the audit report to the Director of Consumer Affairs Victoria.
Auditors must use the audit form we have approved.
Estate agents must:
<ul>
<li>have caused their trust accounts to be audited within three months of 30 June, and </li>
<li>lodge a copy of the audit report with the Director within 10 business days of receiving it from the auditor.</li>
</ul>
Conveyancers must:
<ul>
<li>have their audit reports completed within seven weeks of 30 June</li>
<li>lodge a copy of the audit report with us within 10 business days of receiving it from the auditor.</li>
</ul>
If you don’t fulfil your trust account audit obligations, you can be penalised up to 120 penalty units.
You must keep your trust accounts in a way that allows a proper and convenient audit.
The default reporting period is the standard financial year unless you have received approval from the Director for an alternate reporting period.
During the audit, if your auditor brings a trust account matter to your attention, you must take action to correct the problem.
We consider the following to be serious matters:
<ul>
<li>banking trust money late</li>
<li>having deficiencies in trust accounts</li>
<li>failing to keep cash receipts or cash payments journals (commonly known as ‘cashbooks’)</li>
<li>releasing sales deposits early, and</li>
<li>lodging bonds late, or not at all.</li>
</ul>
We take enforcement action against estate agents and conveyancers who do not meet their legal obligations.
<h2>Trust account inspection program 2015-16</h2>
In 2015-16 we issued 120 infringements - totalling $94,520 in fines - for trust account matters. We issued:
<ul>
<li>52 infringements ($948 each) to agents for failure to cause an audit</li>
<li>seven infringements ($1820 each) to agents for failure to lodge audit report with the Director within 10 business days</li>
<li>61 additional infringements for trust account related matters (various regulations), totalling $32,484.</li>
</ul>
We also sent 295 formal warning letters to agents for breaches of trust accounting regulations.
<h2>Trust account inspection program 2016-17</h2>
This financial year, we are continuing to focus on estate agents and conveyancers properly accounting for trust money. We will inspect more estate agents and conveyancers (including those issued with a formal written warning).
View our most recent completed legal action on a trust account matter: <a href="https://www.consumer.vic.gov.au/news-and-events/news-updates/michael-robert-knight-court-action" target="_blank">Michael Robert Knight – Court action</a>.
For more about your trust account obligations, view our <a href="https://www.consumer.vic.gov.au/businesses/licensed-businesses/estate-agents/running-your-business/trust-accounts/auditing-trust-accounts" target="_blank">Auditing estate agents trust accounts page</a> or <a href="https://www.consumer.vic.gov.au/businesses/licensed-businesses/conveyancers/running-your-business/trust-accounts/auditing-trust-accounts" target="_blank">Auditing conveyancers trust accounts page</a>.
We will continue to provide information to help businesses comply with their obligations, including via our website, publications and call centre.
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