OAR 863-025-0028: Clients’ Trust Account Records and Reconciliation

(1) The monthly cycle for a clients' trust account or security deposits account may begin and end on a stipulated date every month, if the date is consistent from month to month. (2) A property manager must reconcile each clients' trust account within 30 calendar days of the date of the bank statement pursuant to the requirements contained in this section. (a) The reconciliation must have three components that are contained in a single reconciliation document: (A) The bank statement balance, adjusted for outstanding checks and other reconciling bank items; (B) The balance of the record of receipts and disbursements or the check register as of the date of the bank statement; and (C) The sum of all positive owners' ledgers as of the date of the bank statement. (b) The balances of each component in section (2)(a) of this rule must be equal to and reconciled with each other. If any adjustment is needed, the adjustment must be clearly identified and explained on the reconciliation document. (c) Outstanding checks must be listed by check number, issue date, payee and amount; (d) Within 30 calendar days from the date of the bank statement, the property manager must: (A) Complete the reconciliation document; and (B) Sign and date the reconciliation document, attesting to the accuracy and completeness of the reconciliation; and (e) The property manager must preserve and file in logical sequence the reconciliation document, bank statement, and all supporting documentation including, but not limited to, copies of the record of receipts and disbursements or check register and a listing of each owner’s ledger balance as of the date of the bank statement. (3) A property manager must reconcile each security deposits account within 30 calendar days of the bank statement date pursuant to the requirements contained in this section. (a) The reconciliation must have three components that are contained in a single reconciliation document: (A) The bank statement balance, adjusted for outstanding checks and other reconciling bank items; (B) The balance in the records of receipts and disbursements or the check register as of the date of the bank statement; (C) The sum of all positive balances of individual security deposits and fees held in the security deposits account. (b) The balances of each component in section (3)(a) of this rule must be equal to and reconciled with each other. If any adjustment is needed, the adjustment must be clearly identified and explained on the reconciliation document; (c) Outstanding checks must be listed by check number, issue date, payee and amount; (d) Within 30 calendar days of the date of the bank statement, the property manager must: (A) Complete the reconciliation document; and (B) Sign and date the reconciliation document, attesting to the accuracy and completeness of the reconciliation; and (e) The property manager must preserve and file in logical sequence the reconciliation document, bank statement, and all supporting documentation including, but not limited to, copies of the record of receipts and disbursements or check register and a listing of all balances of individual security deposits and fees as of the date of the bank statement. (4) A property manager must take corrective action to resolve all adjustments made in a reconciliation prior to the next reconciliation or document the good faith efforts the property manager has taken to resolve the adjustment. (5) A property manager may delegate the property manager's authority to review and approve reconciliations and to receive and disburse funds for a clients' trust account or security deposits account to another person if the property manager complies with the provisions of OAR 863-025-0015; however, the property manager remains solely responsible for all funds and transactions.