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PRACTICE MANAGEMENT EDUCATION (PME)

Client Account Course

ACTIVITY

What are your expectations for

today’s Client Account course?

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Your Expectations

Course Expectations2

� Course completiono Attend entire course

o Contribute to learning process

� Member feedbacko Course and instructor

� Questions are encouraged

� Learning environmento Interactive

o Undivided attention

o Mutual respect

o Respect for diversity

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Course Overview3

� Three modules:

1. Code of Professional Ethics and Client Account Regulation

2. Client account fundamentals

3. Record keeping

� Networking opportunities

Course Schedule4

Module Content Time Allotted Timeframe

Registration Members arrive or log-in 30 mins 8:30-9:00

Opening Introduction 40 mins 9:00-9:40

#1 Code of Professional Ethics and Client Account Regulation 60 mins 9:40-10:40

BREAK Networking Opportunity 10 mins 10:40-10:50

#2 Client Account Fundamentals 55 mins 10:50-11:45

LUNCH Networking Opportunity 60 mins 11:45-12:45

#2 Client Account Fundamentals (cont’d) 60 mins 12:45-1:45

BREAK Networking Opportunity 10 min 1:45-1:55

#3 Record Keeping 105 mins 1:55-3:40

Q&A Q&A 10 mins 3:40-3:50

Closing Wrap up 10 mins 3:50-4:00

Course Description5

The Client Account (CA) course is designed to:

� Familiarize members with ICCRC’s Client Account Regulation

� Support members in meeting the requirements

� Equip members with the knowledge, skills and attitudes necessary to be effective Immigration Consultants

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Course Objectives6

At the end of the course, you will be able to:

1. Identify the relationship between the Code of Professional Ethics and the Client Account Regulation

2. Identify the significance of the Client Account Regulation

3. Define key terminology related to CA

4. Examine the basic operations of a CA

Course Objectives (cont’d)7

5. Differentiate between the two (2) models for depositing client funds into a CA

6. Apply ICCRC’s compliance audit requirements to your practice

ACTIVITY

In groups of 3, take a moment to introduce yourselves:

� Name

� Place of business, and

� Number of years in the business

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Introductions

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ACTIVITY

In the same groups, respond to the five questions on the “Pop Quiz”

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Pop Quiz

CODE OF PROFESSION AL ETHICS AND

CLIENT ACCOU NT REGULATION

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Module 1

Module 1 Objectives11

� To identify the relationship between the Code of Professional Ethics and the Client Account Regulation

� To identify the significance of the Client Account Regulation

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In your arranged groups of 4, refer to the Code of Professional Ethics and the Client Account Regulation and:

� IDENTIFY and RECORD (in your workbook) the sections of Regulation that correspond to the Articles in the Code

� SHARE with large group your top three takeaways

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GROUP DISCUSSION

Why is the Client Account Regulation important?

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GROUP DISCUSSION

Client Account Regulation14

The Client Account Regulation:

� Protects clients by detailing how client money is to be handled

� Protects members from negligence and unknowingly mishandling client funds

� Brings accountability, transparency, and credibility to the profession

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Module 1: Summary15

What is the relationship between the Code of Professional Ethics and the Client Account Regulation?

1. Establishes professional standards and policies to guide handling of client money

2. Protects clients and the integrity of the profession

3. Articulates competency for the profession

Module 1: Summary (cont’d)16

4. Obliges members to: o protect client property

o keep personal and client property separate

o maintain records that identify client property

o return client property upon request

5. Withdraw money from CA as per retainer agreement

6. Deposit money into CA that is held on behalf of client

Module 1: Summary (cont’d)17

7. Upon withdrawal from representation, must account for all client’s funds and provide outstanding money

8. Reconcile CA within 90 calendar days of each month’s end

9. Multi-disciplinary personnel maintain integrity of profession by following Client Account Regulation

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Module 1: Summary (cont’d)18

Why is the Client Account Regulation important?

When members adhere to the Client Account Regulation they:

� protect CLIENTS

� protect MEMBERS

� protect the PROFESSION

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Questions?

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BREAK

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CLIENT ACCOUNT

FUNDAMENTALS

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Module 2

Module 2 Objectives24

� To define key terminology related to CA

� To identify the basic operations of a CA

� To differentiate between the two (2) models for depositing client funds into a CA

Match the CA term with the corresponding definition

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GROUP ACTIVITY

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“Financial House” Visual26

Reflect on your practice and identify the basic operations of a CA

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GROUP DISCUSSION

CA Process Overview28

Opening / Closing a CA

Every member is required to:

� Have a CA (s.3.1) prior to receiving money to be held on behalf of a client (s.3.2)

o Exception—member who submits annual declaration to ICCRC agreeing not to hold money on behalf of a client at any time

(s.3.3)

� Notify the Council at info@iccrc-crcic.ca within 15 calendar days

(s.4.5)

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CA Process Overview (cont’d)29

Collecting Money from the Client

� Prior to opening a CA, not permitted to receive money to be held on behalf of a client (s.3.2)

� Billing method must be in retainer agreement (Retainer

Agreement Regulation, s.9.1.a)

� Billing methods:

1. Bill by the hour

2. Flat fee billing with payment by milestones or predetermined

date

CA Process Overview (cont’d)30

Depositing Principles

� Choose one model and apply it consistently (s.4.2.c)

� Money held on behalf of client must be deposited into CA within 14 calendar days of receipt (s.4.1.a)

o Applies to member working as employee of immigration agency (s.4.3)

� Members may have more than one CA in one or more currencies (s.4.4)

CA Process Overview (cont’d)31

Prohibitions on using CA

� Member’s (or company’s) personal money must not go into the CA, but into the general account - certain exceptions apply (s.5.1.a)

� No liens or security interest may be granted in the CA, except those arising by operation of law (s.5.2.a)

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CA Process Overview (cont’d)32

Withdrawing from CA

� Disbursement payments (s.6.1.a.i & ii)

� Invoiced fees for services rendered (s.6.1.a.iii)

� Transfers to another account at the request of the client (s.6.1.a.iv)

� Client refund (s.6.1.vi)

CA Process Overview (cont’d)33

Withdrawing from CA (cont’d)

� Interest earned on money in a general CA (s.7.1.a)

� Cannot withdraw in excess of balance for a client (s.6.3) and must maintain sufficient balance to meet obligations (s.8.1)

� May use cheque or electronic transfer, but must adhere to appropriate sections (s.6.4.a.i-iii)

CA Process Overview (cont’d)34

Handling Bank Fees and Interest

� Small amount of money may be kept in CA to cover bank fees (s.5.1.a)

� Interest on CA transferred to general account (s.7.1.a)

o Exception - if CA was opened at the request of client, interest goes to

client (s.7.2.a)

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CA Process Overview (cont’d)35

Multi-Disciplinary Personnel

� Member must adhere to client account rules/by-laws of other jurisdictions IF they do not contravene Client Account Regulation (s.10.1.a)

� Member who is a multi-disciplinary personnel is bound by Client Account Regulation (s.10.2.a)

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LUNCH

Client Account Deposit Models37

Model 1: All funds deposited in CA

Model 2: Unearned funds deposited in CA

Note: You must choose and properly use one (1) model. Select the one that best suits your needs and approach.

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Client Account Deposit Process38

Model 1:

All Funds Deposited in CA

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Start

Funds received and

receipt issued

Deposit all funds in CA

Record transaction in

Client Liability Account

Has invoice been

generated?Yes

Withdraw according to

Client Account Regulation

No

Generate invoice when

service is performed

Update Client Liability

Account

Stop

Client Account Deposit Process40

Model 2:

Unearned Funds Deposited in CA

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39

Start

Funds received

and receipt issued

Has the service been

performed?

Yes

Deposit funds into

General Account

No

Deposit funds into CA

Record in Client

Liability Account

Generate invoice when

service is performed

Transfer funds to

General Account and record in Client

Liability Account

Stop

Record in Income

Account

Generate invoice

ACTIVITY

In your same groups, compare the models:

1. What is the main difference between the models?

2. What are the pros and cons of each model?

3. What personal experiences have you had in working with either of the two models?

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Comparing the Models

Pros and Cons of Models43

Model 1: All Funds Deposited in CA

Model 2: Unearned Funds Deposited in CA

Pros • Simpler decision-making • Clearer records of all funds

• Identifiableimmigration/citizenship-

related income

• Immediate access to earned funds

• Fewer bank fees• Less paperwork and bookkeeping

for CA

Cons • More bank fees• Delayed access to earned

funds• More paperwork and

bookkeeping for CA

• Difficult to justify decision of earned/unearned money

• Difficult to identify immigration/citizenship-related

income

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1. In what situation would you use Model 1?

2. In what situation would you use Model 2?

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GROUP DISCUSSION

Module 2: Summary 45

� CA-related terminology is based on Client Account Regulation

� Basic operations of CA include:

o Opening/closing CA

o Collecting client money

o Depositing money into CA

o Prohibitions on using CA

o Withdrawing money from CA

o Handling bank fees and interest

o Multi-disciplinary personnel

Module 2: Summary (cont’d)46

� CA deposit models:

1. All funds deposited in CA: all client money is deposited

2. Unearned funds deposited in CA: only unearned client money is deposited in CA

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Questions?

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BREAK

RECORD KEEPING

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Module 3

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Module Objective56

� To identify ICCRC’s compliance audit process requirements

Why is record keeping important?

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GROUP DISCUSSION

Benefits of Record Keeping58

Maintaining good records helps you:

� Make informed decisions about your business

� Maintain good business practices

� Track HST*/GST collected and paid for HST* remittance

*or appropriate provincial sales tax

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Benefits of Record Keeping (cont’d)59

� Reconcile CA each month (s.9.1.a)

� Account for client property (A.11.5.1.iii & iv)

� Prepare for ICCRC’s compliance audit process

ICCRC’s Compliance Audit60

� Compliance audit process

o Annual requirement for all members

o New RCICs—four times within the first two years of registering

with the Council

o Requirements are detailed in the Compliance Audit Regulation

� Purpose of compliance audit:

o To demonstrate proper management of client funds

o To maintain license

ICCRC’s Compliance Audit Requirements61

Applies to Model 1 and Model 2 and all record-keeping systems:

1. CA bank statement for month being reported

2. Detailed CA reconciliation statement for month being reported

3. Client list (ICCRC template) for month being reported

NOTE: Protect client confidentiality—do not disclose client names or client contact information

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“Financial House” Visual62

Client Account Bank Statement63

Provide the following information:

� Name of financial institution (s.2.2.f & 4.5)

� Account holder’s name (s.3.1) and address

� Account number (s.4.5)

� Period of statement covering one month (e.g., April 30-May 31)

� Opening and closing balances

� Details of transactions (i.e., deposits and withdrawals)

Record Keeping Systems64

There are four main categories of record keeping systems:

1. Ledger-style (e.g., paper and pencil)

2. Spreadsheet (e.g., Excel®)

3. Accounting Software (e.g., Quickbooks®, Simply Accounting®, MYOB)

4. Immigration Software (e.g., Officio, eCan, QuickImmigrant)

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CA Reconciliation Statement Components

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XY Business

Bank Reconciliation, Oct 31, 2011

Client Account

1 CA bank balance as of Sept 30, 2011 15,000.00

2 Less withdrawals cleared the CA for the month of Oct -33,155.15

3 Add deposits made and cleared the CA for the month of Oct 119,710.48 86,555.33

4 CA balance as of Oct 31, 2011 101,555.33

5 Less withdrawals NOT cleared the CA as of Oct 31, 2011 -17,400.00

6 Add deposits made but NOT yet cleared the CA as of Oct 31, 2011 5,000.00

7 Equals consultant's Client Liability Account balance as of Oct 31, 2011 89,155.33

Detailed CA Reconciliation Statement—Ledger Sample

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Detailed CA Reconciliation Statement—Excel

®Sample67

1 Bank Balance at Sept 30, 2011, per bank statement 15,000.00

2 Less Cheques Written and Cleared the bank in Oct

26/09/2011 Cheque 1 Client 100 146.83-

07/10/2011 Cheque 1 Client 101 750.00-

17/10/2011 Debit Client 102 18.48-

27/10/2011 Cheque 4 Client 104 2,218.40-

28/10/2011 Cheque 3 Client 105 30,000.00-

31/10/2011 Debit Government of Canada 21.44-

Total Cheques Written 33,155.15-

3 Add Deposits Made and Cleared the bank in Oct

07/10/2011 Deposit Client 102 15,000.00

27/10/2011 Deposit Client 103 15,000.00

31/10/2011 Deposit Client 106 89,710.48

Total Deposits Made 119,710.48

4 CA balance as of Oct 31, 2011 101,555.33

5 Less Cheques written but NOT cleared the bank as of Oct 31, 2011

31/10/2011 Cheque 6 Client 108 15,000.00-

28/10/2011 Cheque 5 Client 107 2,400.00-

Total Outstanding Cheques 17,400.00-

6 Add Deposits made but NOT yet cleard the bank as of Oct 31, 2011

31/10/2011 Deposit Client 101 5,000.00

Total Outstanding Deposits 5,000.00

7 Equals Consultants books balance as of Oct 31, 2011 89,155.33

XYZ Immigration Company

Bank Reconcilation, Oct 31, 2011

Client Account

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Detailed CA Reconciliation Statement—Quickbooks

®Sample

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Detailed CA Reconciliation Statement—Officio Sample

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ICCRC’s Client List Template70

As of October 31, 2011

� Client list template for ICCRC compliance audit process

� Applies to both models

� Applies to all record keeping approaches

Client List Money held on behalf of each client

As of October 31, 2011

Client(s)

(protect client confidentiality by using client codes—

do NOT use client names)

Amount held on behalf

of each client

Deposited

in CA (√)

Client 100 0 √

Client 101 5,250 √

Client 102 14,981.52 √

Client 103 15,000 √

Client 104 0 √

Client 105 0 √

Client 106 52,423.81 √

Client 107 1,000 √

Client 108 500 √

TOTAL: This number MUST EQUAL the Client Liability

Account balance (component 7), as of the end of this

particular month.

89,155.33

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ACTIVITY

� Review the documents provided

� Complete the Detailed CA Reconciliation Statement

� Complete the Client List

Remember to protect client confidentiality—

use client codes

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CA Reconciliation

Detailed CA Reconciliation Statement72

John Smith

Detailed Client Account Reconciliation Statement, May 31, 2013

Client Account1 Bank Balance as of April 30, 2013 2,100.00

2 Less withdrawals cleared the CA for

the month of May 2013

Date Method of transaction Client code Amount

May-08 Electronic funds transfer SJ-102 -900.00

May-11 Money order #015420 purchased-

to Australian authorities

WL-103 -150.00

May-14 Cheque 506 MK-104 -50.00

May-20 Electronic funds transfer-to Gov't

Canada

WL-103 -125.00

May-21 Electronic funds transfer WL-103 -500.00

Total Withdrawals -1,725.00

3 Add deposits made and cleared the

CA for the month of May 2013

Date Method of transaction Client code Amount

May-01 Electronic funds transfer WL-103 1200.00

May-31 Electronic funds transfer SM-105 300.00

Total Deposits 1,500.00

4 Client Account Balance as of May 31,

2013

1,875.00

5 Less withdrawals NOT yet cleared

the CA as of May 31, 2013

Date Method of transaction Client code Amount

May-30 Cheque 456 MS-101 -200.00

Total Outstanding

Withdrawals -200.00

6 Add deposits made but NOT yet

cleared the CA as of May 31, 2013

Date Method of transaction Client code Amount

May-31 Cheque 170 SH-106 3000.00

Total Outstanding

Deposits 3,000.00

7 Book (Client Liability Account)

Balance as of May 31, 2013

4,675.00

Client List73

Client List

Money held on behalf of each client

As of May 31, 2013

Client(s)

(protect client confidentiality by using client codes—

do NOT use client names)

Amount held on behalf of

each client

Deposited in

CA (����)

ZM-100 450.00 �

MS-101 300.00 �

SJ-102 200.00 �

WL-103 425.00 �

MK-104 0.00

SM-105 300.00 �

SH-106 3,000.00

TOTAL: This number MUST EQUAL the Client Liability

Account balance (component 7), as of the end of this

particular month.

4,675.00 �

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Requirement to Reconcile Monthly74

� Reconcile CA no later than 90 calendar days after each month’s end (s.9.1.a)

� Retain CA reconciliation and supporting documents of the member’s principal business address for no less than 6 years (s.9.1.b)

GROUPACTIVITY

Read case study in your workbook.

1. How did Doris violate the Client Account Regulation?

2. How did Doris violate the Code of Professional Ethics?

3. What are the implications of Doris’ actions?

4. What action should ICCRC take?

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Case Study

Final Tips76

� Seek direction from the Code of Professional Ethics and Client Account Regulation

� Ask ICCRC for help/clarification

� Reconcile monthly

� Invoice earned fees

� Keep accurate and up-to-date records

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Resources 77

� Resource section in workbook

� What accounting tools do you use in your practice?

� What resources might you recommend to your peers?

Module 3: Summary78

� ICCRC requires:

o Monthly reconciliation statements

o Reconciliation documents kept for 6 years

o 3 documents submitted for annual compliance audit process:

1. CA bank statement for month being reported

2. Detailed CA reconciliation statement for month being reported

3. Client list (ICCRC template) for month being reported

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Questions?

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Questions?

Wrap-up84

Member Feedback Survey

� Feedback for ICCRC on course and instructor

� Online survey - link e-mailed to you today

� Anonymous - be honest and constructive

Wrap-Up (cont’d)85

Final Reflection Opportunity

� Space in your workbook for personal reflection

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Wrap-Up (cont’d)86

Webinar Invitation

� Optional

� Online session—audio and data

� Headset with built-in microphone required

� E-mail CA questions to your instructor in advance

Wrap-Up (cont’d)87

Member Support

� Email instructor with PME course-related questions

� info@iccrc-crcic.ca for all other queries

THANK YOU!

© 2017 Immigration Consultants of Canada Regulatory Council. No part of this publication may be used or

reproduced in any manner whatsoever without the prior written permission of the Council, except in the case of

non-commercial use of brief quotations accompanied by proper citation.