After a detailed technical Blog post, now for something
slight more prosaic!
SIP 7 makes it clear that you have to make disclosure “ …
of where the balance of the funds is held, distinguishing between funds held on
non-interest bearing accounts and interest bearing accounts in the office
holder’s or the insolvent estate’s name, amounts held in the Insolvency
Services Account and in Treasury Bills, and other forms of investments.” In common with the other disclosure
requirements in SIP 7 that disclosure can be made either in any accompanying progress
report, by way of note to the receipts and payments account, or on the face of
the receipts and payments account.
We thought that we would share with you a suggestion that
we have been making to clients for a while in order to ensure that they always
comply with this requirement, and one that we now notice that at least one
monitor is making. The wording that
appears in the receipts and payments account is the title of the account as it
appears in your chart of accounts in IPS, and the equivalent in Insolv and
MYOB, so our suggestion is quite simply to change the title of the account in
the chart of accounts. So, if your
estate account is a non-interest bearing current account then you would change
the account name in the chart of accounts to “Estate bank a/c – non
interest-bearing”, or something similar.
Whilst if it was an interest bearing account, or in respect of any separate
deposit account you might operate, then the name of the account would be
changed to Estate bank a/c – interest-bearing”, or something similar.
