2.7 If a computer system is introduced care must be taken to ensure:
(1) that balances transferred from the old books of account are reconciled with the opening balances held on the new system before day-to-day operation commences;
(2) that the new system operates correctly before the old system is abandoned. This may require a period of parallel running of the old and new systems and the satisfactory reconciliation of the two sets of records before the old system ceases.
2.8 The firm should ensure that office account entries in relation to each client or controlled trust matter are maintained up to date as well as the client account entries. Credit balances on office account in respect of client or controlled trust matters should be fully investigated.
2.9 The firm should operate a system to identify promptly situations which may require the payment of deposit interest to clients.
3. Receipt of client money and controlled trust money
3.1 The firm should have procedures for identifying client money and controlled trust money, including cash, when received in the firm, and for promptly recording the receipt of the money either in the books of account or a register for later posting to the client cash book and ledger accounts. The procedures should cover money received through the post, electronically or direct by fee earners or other personnel. They should also cover the safekeeping of money prior to payment to bank.
3.2 The firm should have a system which ensures that client money and controlled trust money is paid promptly into a client account.
3.3 The firm should have a system for identifying money which should not be in a client account and for transferring it without delay.
3.4 The firm should determine a policy and operate a system for dealing with money which is a mixture of office money and client money (or controlled trust money), in compliance with rules 19–21.
4. Payments from client account
4.1 The firm should have clear procedures for ensuring that all withdrawals from client accounts are properly authorised. In particular, suitable persons, consistent with rule 23(1), should be named for the following purposes:
(1) authorisation of internal payment vouchers;
(2) signing client account cheques;
(3) authorising telegraphic or electronic transfers.
No other personnel should be allowed to authorise or sign the documents.
4.2 Persons nominated for the purpose of authorising internal payment vouchers should, for each payment, ensure there is supporting evidence showing clearly the reason for the payment, and the date of it. Similarly, persons signing cheques and authorising transfers should ensure there is a suitable voucher or other supporting evidence to support the payment.
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