Approved audit programs
One of the ways in which non-compliance is likely to come to our attention, is through an approved audit program.
Those selected for audit are chosen either on a risk basis or from a random sample.
If it is determined that enforcement action is warranted following an audit, we will take a proportionate response that is likely to restore compliant behaviour and serve as a deterrent to future breaches.
There are two approved audit programs currently in progress.
Current audit programs
Purpose of the program
To ascertain compliance by trustees with their obligations under Chapter 2 of the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) relating to statutory trusts, and in particular, the administration of trust accounts.
The scope of the Audit covers compliance with all sections of BIF Act 2017 that refer to record keeping and administration of the project trust account and includes, but not limited, to the following:
- Timeliness of necessary notifications
- Completed Monthly Bank Reconciliations
- Compliance around the administration of the deposits and withdrawals to and from the trust account
- Trust record keeping compliance.
When the program starts
15 September 2023
The period over which the program is to be carried out
15 September 2023 to 30 June 2024
Objective criteria for selecting trust accounts which are to be the subject of audit
A trust account that meets the following criteria may be selected for the audit:
- The trustee is a head contractor; and
- The trustee has not been audited since 1/7/2023; and.
- The project trust account was opened before 1/7/2023; and
- The project trust account had an open status as at 6/9/2023.
Purpose of the program
To ascertain compliance by trustees with their obligations under Chapter 2 of the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) relating to statutory trusts, and in particular, the administration of trust accounts.
The scope of the Audit covers compliance with all sections of BIF Act 2017 that refer to record keeping and administration of the project trust account and includes, but not limited, to the following:
- Timeliness of necessary notifications
- Completed Monthly Bank Reconciliations
- Compliance around the administration of the deposits and withdrawals to and from the trust account
- Trust record keeping compliance.
When the program starts
20 March 2023
The period over which the program is to be carried out
20 March 2023 to 29 September 2023
Objective criteria for selecting persons who are to be the subject of audit
A person who meets the following criteria may be selected for the audit:
- the person is a head contractor or related entity subcontractor
- the person opened or closed at least one project trust account on or after 1 February 2022
or
- the person has an open project trust account and also demonstrated non-compliance with the minimum financial requirements;
or
- the person has an open project trust account on or before 31 December 2022 which was near practical completion.
Previous audit programs
The 9 August 2022 to 8 October 2022 audit program is complete.
New audit details will be added at a later date.
Purpose of the program
To ascertain compliance by trustees with their obligations under Chapter 2 of the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) relating to statutory trusts, and in particular, the administration of trust accounts.
The scope of the Audit covers compliance with all sections of BIF Act 2017 that refer to record keeping and administration of the project trust account and includes, but not limited, to the following:
- Timeliness of necessary notifications.
- Completed Monthly Bank Reconciliations.
- Compliance around the administration of the deposits and withdrawals to and from the trust account.
- Trust record keeping compliance.
When the program starts
19 September 2022
The period over which the program is to be carried out
19 September 2022 to 17 March 2023
Objective criteria for selecting persons who are to be the subject of audit
A person who meets the following criteria may be selected for the audit:
- the person is a head contractor or related entity subcontractor; and
- the person opened or closed at least one project trust account on or after 1 February 2022; and
- the person has either not had a project trust account audited previously or was found to be non-compliant with section 19A, 20 or 20A of the BIF Act during a prior audit.
Purpose of the program
To ascertain compliance by trustees with their obligations under the Building Industry Fairness (Security of Payment) Act 2017 (BIF Act) relating to administration of a retention trust account.
When the program starts
15 December 2022
The period over which the program is to be carried out
15 December 2022 to 14 March 2023
Objective criteria for selecting persons who are to be the subject of audit
The criteria for selection for audit are:
- The person (company or individual) is a trustee for a retention trust account
- An account review report has not been submitted for a retention trust account held by the trustee within the required timeframes (BIF Act, sections 57 and 57A)