Financial Administrators: Duties, Accounts and Reviews

Authority of a Financial Administrator

A financial administrator collects income, pays authorised expenses and manages the property covered by the order. The person’s needs and participation remain part of the decision, even when somebody else has authority over their finances.

The names and oversight arrangements differ across states.

State	Name Used	Appointment and Oversight
NSW	Financial manager or private manager	The Supreme Court or NSW Civil and Administrative Tribunal appoints the manager. NSW Trustee and Guardian issues Directions and Authorities and supervises private management.
Victoria	Administrator	The Victorian Civil and Administrative Tribunal appoints the administrator and sets the financial matters within their authority.
Queensland	Administrator, including a private administrator	The Queensland Civil and Administrative Tribunal sets the administrator’s authority and reporting directions.

NSW Trustee and Guardian’s guide for private financial managers explains the manager’s role. The financial management orders guide covers the NSW appointment process.

In Victoria, decision-making must follow the person’s will and preferences under the statutory principles. Queensland administrators must apply the general principles and follow the tribunal order. These duties require more than choosing the cheapest option: record how a spending decision meets the person’s needs.

An administrator’s financial authority does not itself give authority over personal or health decisions. Read the financial matters specified in the order before agreeing to a property sale or another major commitment.

The Financial Management Plan

A financial management plan explains what the person owns, what they receive and how their money will meet their needs. It also identifies debts and major decisions ahead.

Include the following information in the relevant form.

• Assets and current balances, including the home and investments.
• Expected income, such as pensions, rent and interest.
• Regular spending on accommodation, care and everyday needs.
• Debts and the payments needed to meet them.
• Proposed property sales, investments or other major commitments.
• The person’s needs and preferences that inform the spending plan.

In NSW, the Private Manager’s Plan is completed at the beginning of management. NSW Trustee and Guardian authorises its implementation. The Directions and Authorities set the manager’s reporting requirements.

Victoria’s Financial Statement and Plan is normally due within six weeks, subject to the time specified in the order. The Administration Guide hosted by State Trustees explains the form and its required information.

In Queensland, the written decision can require a financial management plan. QCAT can direct a further plan where the information supplied before appointment did not cover the person’s circumstances. Use the deadline in that direction.

Keep the plan separate from the historical accounts. A plan forecasts spending. An account explains what actually happened and why the balances changed.

Annual Accounts and Examination

Annual accounts show the person’s assets and liabilities alongside the money received and paid during the reporting period. Supporting statements allow the examiner to connect the reported figures to actual transactions.

State	Account Requirement	Examination
NSW	Lodge yearly accounts under the reporting directions.	NSW Trustee and Guardian reviews accounts against the authority and approvals given.
Victoria	Follow VCAT’s ordered timetable. Section 61 provides an annual anniversary default unless VCAT directs otherwise.	VCAT can appoint State Trustees or another examiner to report on the accounts.
Queensland	When accounts are ordered, lodge before the appointment anniversary unless the tribunal specifies otherwise.	The asset rules determine whether accounts go directly to QCAT or to an approved examiner.

QCAT’s administrator guidance gives the lodgement rules and supporting-document requirements. Queensland Public Trustee is an approved examiner. A plan deadline and an account deadline can differ, so record each separately.

Reconcile every bank account before transferring totals into the account form. Start with the opening balance, add receipts and subtract payments. The resulting closing balance must match the statement, with any timing difference explained.

In this hypothetical example, a father’s account opens at $12,000, receives $24,000 and pays $22,500 during the reporting period. Its closing balance is $13,500. A transfer from his savings account must be identified separately so it is not counted as new income across the combined accounts.

The bank statement reconciliation guide explains the matching process. Unexplained balance differences, unsupported cash payments and transfers to the administrator’s own account require an explanation backed by records.

When a Filed Account Differs From the Bank Records

Preserve the filed account before investigating a discrepancy. Save its supporting ledger and the examiner’s query together, then identify the bank account and reporting period affected.

Suppose, in a hypothetical examination, the filed account shows a closing balance of $13,500 while the bank statement shows $13,000. Trace the $500 difference to individual entries before changing either record.

• A timing difference needs the payment instruction and the later statement showing when it cleared. Record it in the reconciliation for the correct period.
• An omitted $500 payment needs its bank entry and supporting receipt added to the correction schedule.
• A receipt entered twice needs the duplicate identified and removed from the corrected totals, with the original entry retained in the history.
• An unsupported $500 withdrawal remains an unresolved payment while you seek its purpose, recipient and authority. A matching balance cannot supply that evidence.

Request missing statements from the bank and receipts from the supplier or person claiming reimbursement. Record each request and response. Send the examiner a reconciliation showing the filed amount, the proposed correction and the supporting source for each difference.

Obtain the supervising authority’s instructions about correcting a lodged account, reporting an unauthorised payment and escalating unresolved concerns. In NSW, address the query through NSW Trustee and Guardian. Victorian accounts follow VCAT’s directions and its appointed examiner’s process. Queensland accounts follow QCAT’s decision and examination arrangements.

Keep the original account, corrected version and correspondence so the examiner can follow every change. A balancing journal or repayment does not establish that the original payment was authorised or that the reporting issue is closed.

Common Failures and Their Consequences

Mixing funds, making unauthorised payments to yourself and failing to keep records can lead to questions about your management. Missing accounts can also lead to an early review of the appointment.

Keep the person’s money separate from your own. Queensland section 50 and Victorian section 60 contain exceptions for jointly owned property. An existing joint asset does not make unrelated personal spending an authorised use of the person’s funds.

Payment for your time and reimbursement of expenses are different. NSW private managers need approval for remuneration. In Queensland, section 48 permits remuneration for a professional administrator only when the tribunal orders it. Keep receipts and follow the relevant authority for reimbursement.

State Trustees’ Administration Guide explains that failure to lodge accounts can lead VCAT to reassess the order and appoint another administrator. NSW Trustee and Guardian can seek review where a private manager fails to meet their obligations.

Compensation depends on the breach and resulting loss. Queensland section 59 permits compensation or an account of profits for failure to comply with the Act. Victorian section 181 permits compensation for loss caused by a contravention. Removal from office does not automatically end that exposure.

Keeping Records That Pass Examination

Keep a transaction ledger that connects every reported amount to its supporting record. Retain the order, directions and approvals alongside bank statements and receipts. Also retain asset records and documents explaining major decisions.

For each transaction, record the account, date, amount and purpose. Give it an income or spending category and a source reference. A transfer needs both account entries matched. A reimbursement needs the expense receipt and the record of repayment.

NSW’s Private Manager’s Handbook directs managers to retain financial records for five years. In Victoria, section 59 requires accurate records of all dealings within the ordered financial matters. Queensland section 49 requires reasonable records and their production when the tribunal requires them.

If an account is overdue, collect the complete statements for its reporting period and reconstruct the ledger. Keep unexplained items visible while you obtain receipts or explanations. Request an extension through the relevant process if needed, with the reason and a proposed completion timetable.

FinTrace saves lawyers and forensic accountants hours of statement conversion and review when they help reconstruct financial records. The service turns supplied PDFs into a searchable, categorised Excel ledger and a clear findings report. Source filenames and page references put the supporting evidence beside the findings, including suspicious transfers and gaps in the supplied statements.

Final Accounts and Handover

When an appointment changes, establish who has authority and the effective cut-off from the replacement order and directions. A proposed resignation alone does not identify the successor’s powers.

Prepare a reconciliation to that cut-off covering receipts, payments, assets and liabilities. Match bank balances to statements and list uncleared payments separately. Identify unpaid bills, outstanding receipts and unresolved examiner queries, with the person responsible for each next action.

South Australia’s Private Administrators’ Guide expressly requires a replaced administrator to hand over financial affairs and lodge a final account with Public Trustee. For a resignation, its stated period runs from the start of the financial year to the effective resignation date.

In NSW, obtain the closing-account and transfer directions from NSW Trustee and Guardian. In Victoria, follow VCAT’s replacement order and obtain directions for the final account and its examination. Queensland section 32B allows QCAT to direct a former administrator when an appointment ends. Follow those directions for the records and remaining work.

Transfer financial records securely to the authorised successor, including the reconciled ledger and the account versions. Provide statements, ownership records, approvals and documents explaining unresolved items. Record what was delivered and acknowledged. Use the supervising body’s required reporting period and lodgement process for the change of appointment.

Before lodging, match the form’s totals to the ledger and the ledger’s closing balances to each statement. Give the examiner the supporting records needed to follow any unusual item through to its explanation.