The Gazette 1982

GAZETTE

JULY/AUGUS

1982

wasted in trying to dig out masses of details often

buried in correspondence. It will also make it much

easier to pick up the threads again after stoppages

because the Administration Record provides — laid

out in simple form — a cross section of all the detail

which will be required for ongoing decisions and

reports.

A properly maintained Administration Record

progressively builds up what is almost a draft

Administration Account, without need for many

changes.

It is not suggested that the Administration Record

should be written up after every transaction — this

would obviously be a great waste of time. It is

suggested that information be extracted from the

General Correspondence and Lodgments files and

transferred to the Administration Record at logical

break points — first, for example, when the Schedule

of Assets is completed (when the opening balance

sheet is available); second, when most assets have

been collected —to see what is available for debts and

legacies and what is outstanding; third, at the

discharge stage, to ensure this is complete.

The system represents a satisfactory working

compromise between having no book-keeping on the

one hand and full continuous accounting treatment

(balance sheet, journals, asset and liability accounts)

on the other hand — a compromise that should be

effective in terms of performance and economic in

terms of cost.

Winding-Up and Report

Since the Administration Record records the

extent to which all assets, legacies, and debts have

been dealt with, it tells the Solicitor when any stage

has been reached at which it would be appropriate to

prepare a Report. It also highlights any items

outstanding which need attention and which may be

holding up the Report and final winding-up, without

the need for wading through masses ot

correspondence.

. .

When it is decided to make a Report, the solicitor

will find that he has in his Administration Record and

Lodgments File convenient and ready structured

lists of all the items he needs to include.

Delegation

. .

By the use of such a system, constant delegation is

easily achievable by breaking administration work

down into its basic tasks - obtaining valuations,

circulating Grants, paying bills - which can then be

delegated and checked off periodically in the

Administration Record.

Standard and Printed Letters

There is also a strong case, if effective delegation is

to be achieved, for standard letters, memos and

receipt forms to be prepared. Many letters sent in

Administration cases are so similar that the use ot a

printed form of letter or of a word processor, to

produce similar though not identical letters, would

be of advantage.

Wide Front Reduces Time

Many of those working in administration insist on

completing all activities in sequence.

For example, they may pass the Irish Schedule of

Assets and extract Irish Probate before lodging the

English or foreign schedules, which could have been

passed at the same time as the Irish — and they may

wait until the winding up stage before starting to deal

with Income Tax. Unnecessary working in sequence

merely extends the total time it takes to complete an

administration. It should be possible to undertake

many activities in parallel. Work should always be

progressed on the broadest possible front, which will

reduce in width as successive stages are completed.

This is greatly facilitated by having an effective

control system such as that suggested here.

The systems proposed above are, of course,

infinitely variable and can be tailored to suit the

circumstances of any individual practice. The thing is

to have effective planning and essential control which

will enable efficient administration of estates and

save it from becoming a "poor relation" of other

activities in the office. •

Comment

(Continued from P. 171)

the additional V.A.T. procedures. The greatest

difficulty will probably arise in adapting the many

and various mechanical or electronic (but non-

computer) accounting machines that have no

capacity for an additional V.A.T. function. Such

systems, which at present perform very simply and

satisfactorily, will, in many cases require to be

supported by a range of additional books of "first

entry", which must be maintained by hand and

which will necessarily entail a very considerable

input of book-keeping time.

In terms of cost economics, many practices may

conclude that the time has come to consider installing

a completely new — and, preferably, computerised

— Accounts system.

As it has been explained to the profession that

solicitors have been brought into the V.A.T. net in

order to conform with E.E.C. regulations and

agreements, it is worth remarking that the confor-

mity would seem to begin and end with the principle.

The rate of V.A.T. imposed in this Country — 18%

— would appear to be the second highest in the

E.E.C. (the lowest V.A.T. rate being that of

Germany, at 5%), which confers upon us the

distinction of boasting the second highest rate of

V.A.T. and the highest rate of Stamp Duty.

And it should also be clearly understood that the

introduction of the solicitors' profession into the

V.A.T. system costs the profession nothing more

than the additional administrative trouble involved.

It is our clients who pay; regrettably, the increased

cost of law must inevitably fall hardest upon that

section of the community which needs law most. •

175