1.0 Definitions
Accountant's Declaration - A signed confirmation by our qualified accountant that your client account is in order. Required by Client Money Protect, PropertyMark, Moneyshield, Safeagent, RICS and UKALA government approved CMP schemes.
Accountant's Report - A detailed report completed following a full audit examination. Required by Propertymark, Money Shield, and RICS schemes.
AccountMOT - Optional 6-monthly health check of your client account, followed by annual sign-off reminder service.
Client Account Sign Off - Our review compares your client bank account statements against your ledger records (e.g. excel), CRM or accounting software system ledger.
CMP Schemes - Client Money Protection schemes including Client Money Protect, Propertymark, UKALA, Money Shield, Safeagent, and RICS.
CRM/Accounting Software System - Your software or method for account reconciliation, rent collection, and payments to landlords (including Excel sheets, Calmony or high street online banking systems).
Client Account Audit Review - Full comparison of your 12-month bank statements against your ledger system, including:
- Random "follow the money" checks on rent payments, contractor payments, and landlord payments
- Trading account payment transfers verification
- Beneficiary's of Interest checks
- Selected date bank balance checks versus ledger/system reconciliation reports
Client Account Sign Off - Final stage where we provide your completed accountant's report or declaration, signed by our ACCA qualified accountant.
Free Health Check - A snapshot audit of your client account where we quickly bullet-point any areas needing focus. Provides overview of potential issues and estimated costs for full audit.
Follow the Money Check - Detailed tracing of specific transactions from receipt through to final payment, ensuring proper authorization and documentation.
System to Bank Reconciliation Report - The ledger report showing people in credit/debit, balances including deposits, and unreconciled bank statement entries.
2.0 Key Liability Limitations
2.1 You, not Calmony, take full responsibility if:
- Information is withheld or deliberately hidden from us
- Material information is presented after we've signed off your accounts that would have changed our assessment and audit
- Any deficit is identified in your client accounts
2.2 Calmony can only audit your client account based on the information you provide to us, specifically your client account bank statements and ledger from your CRM or accounting software system.
2.3 If your CMP provider requires further review after our sign-off, this constitutes additional audit work and will be charged at our hourly rate. We'll provide a time estimate and statement of works before proceeding.
3.0 What All CMP Schemes Commonly Require
3.1 Your membership with any CMP scheme typically requires:
- Separate Client Accounts - Hold client money in accounts at FCA-authorised UK banks, separate from your business money
- Proper Account Designation - Client accounts must be clearly titled as "Client Account" under the alias name convention feature with your bank
- Bank Safeguarding Letter - Written confirmation from your bank that they cannot offset client money against business debts
- Regular Reconciliations - Monthly or bi-monthly matching of bank statements to your ledger records
- Authorised Signatories - Clear records of who can access and authorise payments from client accounts
- Professional Indemnity Insurance - Minimum coverage levels as specified by your scheme
- Record Keeping - Detailed transaction records kept for minimum 6 years
- Certificate Display - Your CMP certificate prominently displayed in all offices and on your website
4.0 Scheme-Specific Requirements We Audit
4.1 Propertymark & Moneyshield
- Accountant eligibility verification
- Bank authorisation checks
- Account designation and availability verification
- Interest handling procedures (if applicable)
- Payment sampling (in and out)
- Signatory schedule review
- Cash book and ledger reconciliation
- Client balance debit checks
- Transfer documentation review (sales drawn down records)
- Reconciliation timing and documented records
- Dormant funds handling
4.2 RICS (Royal Institution of Chartered Surveyors)
- Surveying services vs property agent requirements
- Professional standards compliance
- Client money handling procedures specific to surveying work
4.3 Client Money Protect
- HealthCheck option for firms holding under £250,000 client money
- Basic standard compliance check
- Separate audit requirements if mixing residential/commercial client money
4.4 UKALA (UK Association of Letting Agents)
- Basic standard compliance check
- Client money handling verification
- Third-party arrangement disclosure
4.5 Safeagent
- Basic standard compliance check
- Interim reports required for new firms (after 6 months)
- Annual reports thereafter
5.0 Our Service Stages and Payment Terms
5.1 Free Health Check
5.1.1 We provide a snapshot audit of your client account and brief report on what's involved in your full CMP sign-off, including estimated costs.
5.2 Client Account Audit Review (Payment Required)
5.2.1 Full comparison of your 12-month bank statements to your ledger system. Payment required on completion before we proceed to issuing the CMP schemes accountant report or declaration sign off.
5.2.2 Accountant's Declarations are general audits required by CMP, Safeagent, and UKALA.
5.2.3 Full Accountant's Reports are full audits required by Propertymark, Money Shield and RICS. These are a higher cost due to additional compliance checking and testing required.
5.3 CMP Scheme Sign-Off Report or Declaration
5.3.1 We provide your completed accountant's report or declaration, signed by our ACCA qualified accountant, directly to you for submission to your CMP scheme.
5.3.2 Any amendment to the report or declaration will void the signing, and Calmony automatically rescinds the sign off.
5.3.3 You, not Calmony, are responsible for any costs or damages caused by amending the CMP scheme sign-off report or declaration.
5.4 Monthly Client Account Sign Off Service (Optional)
5.4.1 Calmony can provide you, your co directors, partners or board an independent client account monthly reconciliation sign-off report.
5.4.2 This is a monthly subscription services and minimum term of 12 months.
5.5 Mid year AccountMOT (Optional)
5.5.1 After an audit and sign off has been conducted we can contact you with reminder for a 6 (six) monthly client accountMOT check. Charges will apply.
5.6 Additional Audit Benefits Included
5.6.1 OFSI Review, Calmony will run a one-off check of your landlords and tenants against the sanctions lists and provide risk report and estimated risk of OFSI fine amount.
5.6.2 NRL and HMRC Risk Assessment, Calmony will review your oversea landlord profile and risk assess the potential HMRC penalties if there are gaps in NRL deductions or exemptions.
5.6.3 Fee Review, Calmony will run a one-off check that analysis your landlord management fees to identify any potential missed or low fees
6.0 If a Deficit is discovered
6.1 If a debit or deficit is discovered in the audit, we will report directly to the client bank account holder and provide a recommendation to correct the client bank account, options may include;
6.1.1 Full Payment, pay the full amount immediately with recommendations on how to correctly journal entry for reconciliation.
6.1.2 Instalment Plan, provide an instalment plan to repay over next 12 months with recommendations on how to correctly journal entry for reconciliation.
6.1.3 Sales draw down Instalment Plan, provide an instalment plan to repay over the next 12 months based on the invoices sales transfer, with recommendations on how to correctly journal entry for reconciliation.
7.0 Suspicious Activity Reporting
7.1 If we discover suspicious activity, we'll first report our findings to client bank account holder. If the activity relates directly to you as the account holder AND appears potentially criminal (theft of client funds) and not an error, we're are duty bound to report this to both you and your CMP scheme.
8.0 Payment Terms
8.1 Before starting an audits, we will send a Statement of Works quotes, detail an estimation on the hours to conduct the audit.
8.2 On signing of the Statement of Works, you agree to pay 25% upfront fee via the payment link on the Statement of Works. Once the 25% deposit has cleared, the date for starting the audit will be confirmed.
8.3 On completion of the audit and confirmation to issue signed CMP schemes report or declaration. An invoice will be issued with payment link, once the payment has cleared, the signed report or declaration will be issued.
8.4 Additional Work, any extra investigations requested by your CMP provider will be charged at hourly rates with prior estimate.
8.5 If you are a member of Propertymark, Moneyshield or RICS, audits reports will cost more than declarations, due to the scheme additional compliance check and testing requirements.
9.0 Contact and Amendments
9.1 These terms may be updated periodically, and it is your responsibility, not Calmony, to regularly review these terms.
9.2 Payment of a statement or works or a subscription is confirmation you accept these terms and conditions.
These terms are designed to protect both you and Calmony while ensuring your CMP compliance requirements are met professionally and efficiently.
Versions 1.0 26.05.2025
Version Control
| Version | Who | The change |
| 1.0 | Glyn | Established the client account sign off terms |
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