sec.10FLedger accounts and reconciliation statements— Act , s 52

sec.10F Ledger accounts and reconciliation statements— Act , s 52

For section 52 (a) of the Act , the following records are prescribed for each project trust and retention trust— ledger accounts kept in accordance with subsection (2) ; and monthly reconciliation statements prepared in accordance with subsection (3) showing that the ledger accounts correctly record relevant transactions for the trust. The ledger accounts for a project trust or retention trust must be kept as follows— the ledger accounts for the trust must be kept separately from the ledger accounts for any other trust and from any other accounting record; each relevant transaction for the trust must be recorded in the ledger accounts within 3 business days after the transaction occurs; there must be separate ledger accounts for the following— each beneficiary other than the trustee; the trustee; the trust account; before an electronic system used to keep the ledger accounts is changed or records are archived or deleted from the system, steps must be taken to ensure that the records remain accessible in a readable form. A monthly reconciliation statement— must be prepared within 5 business days after the end of each month; and must show a trial balance of the ledger accounts at the end of the month confirming that the total of debit balances equals the total of credit balances; and must show that the balance in the trust account ledger account at the end of the month is the same as the balance shown in the financial institution statement for the trust account at the end of the month. In this section— relevant transaction , for a project trust or retention trust— means an activity or event that affects the financial position and value of interests in the trust; and includes— for a project trust— a claimant giving a payment claim under section 75 of the Act ; and a respondent giving a claimant a payment schedule under section 76 of the Act ; and any other activity or event that affects a claimant’s entitlement to a progress payment; and for a retention trust— withholding an amount from payment to a beneficiary; and an activity or event that affects the beneficiary’s entitlement to the amount withheld. s 10F ins 2020 SL No. 241 s 15 sub 2024 SL No. 85 s 6 (sec.10F-ssec.1) For section 52 (a) of the Act , the following records are prescribed for each project trust and retention trust— ledger accounts kept in accordance with subsection (2) ; and monthly reconciliation statements prepared in accordance with subsection (3) showing that the ledger accounts correctly record relevant transactions for the trust. (sec.10F-ssec.2) The ledger accounts for a project trust or retention trust must be kept as follows— the ledger accounts for the trust must be kept separately from the ledger accounts for any other trust and from any other accounting record; each relevant transaction for the trust must be recorded in the ledger accounts within 3 business days after the transaction occurs; there must be separate ledger accounts for the following— each beneficiary other than the trustee; the trustee; the trust account; before an electronic system used to keep the ledger accounts is changed or records are archived or deleted from the system, steps must be taken to ensure that the records remain accessible in a readable form. (sec.10F-ssec.3) A monthly reconciliation statement— must be prepared within 5 business days after the end of each month; and must show a trial balance of the ledger accounts at the end of the month confirming that the total of debit balances equals the total of credit balances; and must show that the balance in the trust account ledger account at the end of the month is the same as the balance shown in the financial institution statement for the trust account at the end of the month. (sec.10F-ssec.4) In this section— relevant transaction , for a project trust or retention trust— means an activity or event that affects the financial position and value of interests in the trust; and includes— for a project trust— a claimant giving a payment claim under section 75 of the Act ; and a respondent giving a claimant a payment schedule under section 76 of the Act ; and any other activity or event that affects a claimant’s entitlement to a progress payment; and for a retention trust— withholding an amount from payment to a beneficiary; and an activity or event that affects the beneficiary’s entitlement to the amount withheld.