CONP0059 – Accountant’s Report – Collection or Debt Repayment Agency

Jurisdiction: Country: Canada | Province or State: Alberta

What is a CONP0059 – Accountant’s Report – Collection or Debt Repayment Agency?

This form is an independent accountant’s report for Alberta collection agencies and debt repayment agencies. It confirms that you have set up and managed your trust account and records properly over a defined period. It is prepared and signed by a licensed Chartered Professional Accountant (CPA) who is independent of your business.

The report supports your licence application or renewal. It shows the regulator that you handle client money according to Alberta’s rules for trust funds. It focuses on core controls: a separate trust account, timely deposits, accurate records, monthly reconciliations, and proper disbursements. It also captures basic business details, the reporting period, and any exceptions the accountant finds.

Who typically uses this form?

Owners and directors of collection agencies and debt repayment agencies use it to meet licensing requirements. Compliance managers and bookkeepers gather records and coordinate the work. An external CPA performs the procedures and completes the certification. The regulator reviews it and keeps it on your licence file.

You need this form if you plan to apply for a licence or renew your existing licence. You also need it if the regulator asks for it during an inspection, after a change to your trust account, or after a significant change in ownership. If you held client money, this report is almost always required. If you did not hold funds during the period, you still file the report. In that case, the CPA confirms there was no trust activity and that controls are in place if you begin holding funds.

Typical usage scenarios

• A new agency applying for a licence
• An established agency renewing after year-end
• A business that changed banks and needs to show the new trust account is compliant
• An agency that had a trust discrepancy and must file a report demonstrating corrective action
• Debt repayment agencies also use it when they collect payments from consumers and distribute funds to creditors under repayment programs.

In short, you use the CONP0059 to prove that your trust money is safe, tracked, and paid out correctly. This protects consumers and creditors and helps you keep your licence in good standing.

When Would You Use a CONP0059 – Accountant’s Report – Collection or Debt Repayment Agency?

You use this form when you apply for a new licence as a collection agency or debt repayment agency in Alberta. The regulator expects proof that you have a proper trust account and the right controls before you begin handling money. Your CPA will confirm that the trust account exists, is separate from your operating funds, and is set up with the correct naming and signing rules.

You also use it for annual licence renewal. The reporting period usually matches your fiscal year. The CPA looks at your books and trust records for that year. They confirm that deposits and withdrawals were handled properly and that monthly reconciliations match the bank. If your fiscal year has no trust activity, the CPA will state that the account was inactive or that no trust account was required and why.

Use the form when you change banks or open additional trust accounts. The regulator needs to see that each trust account meets the rules. Your accountant may confirm the new account number, branch, and designation as “trust” and verify reconciliations from the changeover month.

You may also need it after a material business change. Examples include a change in ownership or directors, a merger, or a restructuring that affects who controls the trust account. The CPA’s report helps the regulator understand what changed and whether your controls remain effective.

If you are closing the business or closing the trust account, you use the form to show that all funds were disbursed, no balances remain, and no unclaimed money is sitting in the account. Your CPA will check the final reconciliation and may test a sample of final payouts.

Typical users

• Agency owners
• Compliance managers
• Controllers who coordinate with an external CPA

If you are a small shop, you may be the owner and the bookkeeper. You still need an independent CPA to complete the form. In-house accountants cannot sign it because independence is required.

Practical scenarios

• A collection agency takes in client payments daily. The bookkeeper deposits funds to the trust account the same day and logs each payment in the client sub-ledger. At month-end, they reconcile the trust account to the bank statement and to the client listings. The CPA reviews these reconciliations, tests samples of deposits and disbursements, confirms the bank balance, and completes the form. The report becomes part of the renewal package.
• A debt repayment agency collects funds from consumers each pay period. It holds the money in trust, then pays creditors under a plan. The CPA tests whether the agency releases funds only as authorized, that fees are drawn properly under the agreement, and that the trust account never runs a negative balance. The completed report supports the agency’s renewal.

Legal Characteristics of the CONP0059 – Accountant’s Report – Collection or Debt Repayment Agency

This form is a regulatory compliance document. It is not a contract between private parties. It is legally required for licensing and renewal under provincial consumer protection rules. Filing it is a condition of getting or keeping your licence.

The report is legally significant because it helps the regulator determine if you meet licence conditions. The regulator can rely on the CPA’s work to assess your trust practices. If the report shows problems, the regulator may take action. This can include requests for more information, conditions on your licence, or, in serious cases, suspension or cancellation. False or misleading statements can lead to enforcement and penalties.

What ensures enforceability?

It is the licensing framework. You agree to comply when you apply for a licence. You must maintain a proper trust account, keep accurate records, and file required reports. The accountant’s report is part of this compliance package. The CPA signing the form is also bound by professional standards and ethics. They must be independent and competent. They must not be an officer, director, owner, or employee of your business.

The form commonly uses a “specified procedures” or “review-level” approach focused on trust records. The CPA does not audit your financial statements. They perform targeted work on trust controls and transactions and report exceptions. The report often includes a checklist and a certification statement. It may require the CPA to state whether, based on their work, anything came to their attention that suggests non-compliance. The regulator understands these assurances and expects them to be accurate.

General legal considerations include confidentiality of client information, the retention of supporting records, and the requirement to maintain bank confirmations and reconciliations. You must keep records for a set period and produce them if the regulator asks. You must ensure you only use trust funds for their intended purpose and that you release funds according to client instructions and applicable rules. The trust account must be separate from your general account at all times.

How to Fill Out a CONP0059 – Accountant’s Report – Collection or Debt Repayment Agency

Follow these steps to complete the form accurately and on time. In most cases, you will complete the business identification sections. Your CPA will complete the accounting procedures and certification parts.

Step 1: Prepare your records

Gather the documents your CPA will need

• Licence number, legal name, trade names, and business addresses.
• Fiscal year start and end dates for the reporting period.
• Trust account bank details: institution, branch, transit, and account numbers.
• Bank statements for the trust account for the entire period, including the month after year-end.
• Monthly trust reconciliations for each month in the period.
• Detailed trust sub-ledger listings by client as at month-end and year-end.
• Deposit books, e-transfer and card settlement reports, and deposit slips.
• Cancelled cheques, EFT confirmations, and wire advices for trust disbursements.
• Client or creditor authorizations for disbursements and fee draws.
• Copies of agency agreements and consumer repayment plans, as applicable.
• Any internal policies for trust handling and sign-offs.
• Bank confirmation contact details for your CPA.

Having these ready reduces cost and delays. Your CPA will select samples. They will also send a bank confirmation.

Step 2: Identify the parties

Complete the licensee information

• Legal entity name exactly as it appears on your licence or registry.
• Trade name(s) used in Alberta.
• Licence category: collection agency or debt repayment agency (select one or both if applicable).
• Licence number and expiry date.
• Physical and mailing addresses, phone, and email.
• Contact person for trust and records.

Enter the CPA’s details if the form asks for them here

• CPA firm name and address.
• Name of the signing CPA and their designation.
• CPA permit or registration number (public accounting permit if required).
• Contact information.

Check spelling and consistency. The name on the form must match the name on the trust bank account and licence.

Step 3: Define the reporting period

State the period the report covers. For annual filings, use your fiscal year. For a new application, the period may be “from inception to [date]” or “no trust activity to date.” If you changed banks or closed the trust account, state the start and end dates for the relevant period. Make sure the period on the form matches the bank statements and reconciliations you provide.

Step 4: Describe the trust account(s)

Complete the section on trust accounts

• Bank name, branch address, and transit.
• Trust account number(s) and the formal account title, which should include the word “Trust.”
• Province where the account is held (should be Alberta unless approved otherwise).
• Signatory rules (e.g., two signatures required, who can sign).
• Whether interest is earned and how it is treated.
• The date the account was opened, and if applicable, the date closed.

If you have more than one trust account, list each one. Attach a schedule if the form does not have enough lines.

Step 5: Confirm your internal controls

Answer any control questions on the form. These often include

• Whether you deposit funds to trust without delay.
• Whether you keep trust funds separate from operating funds.
• Whether you reconcile monthly and resolve discrepancies promptly.
• Whether you maintain a client sub-ledger and avoid negative client balances.
• Whether disbursements are supported by written authorization.
• Whether you charge or withdraw fees in line with agreements.

Explain “yes” answers briefly where the form asks. If “no,” state the reason and remediation. Keep it factual and short.

Step 6: Provide supporting schedules

Attach the schedules your CPA will rely on

• A year-end trust reconciliation that ties:
• Bank statement ending balance,
• Plus/minus outstanding items,
• To the trust general ledger balance,
• And to the total of the client sub-ledger listing.
• A list of outstanding cheques and deposits at year-end with dates and amounts.
• A client-by-client trust balance listing as at year-end.
• For periods with no activity, a statement showing nil balances.

Your reconciliation must balance. If it does not, fix it before the CPA starts. Unexplained differences slow the report and risk exceptions.

Step 7: CPA procedures and findings

Your CPA completes the verification steps. These usually include

• Obtaining a bank confirmation for each trust account.
• Reviewing monthly reconciliations and testing whether they were prepared on time.
• Testing a sample of deposits for completeness, timing, and correct posting.
• Testing a sample of disbursements for authorization and proper purpose.
• Reviewing client sub-ledgers for negative balances or old items.
• Reviewing outstanding cheques for staleness and proper follow-up.
• Assessing whether interest and fees were handled according to agreements.

The CPA records exceptions on the form. If there are none, they will state that nothing came to their attention suggesting non-compliance. If exceptions exist, they will describe them. You should also attach your remediation plan if the form requests it or if the issue is significant.

Step 8: Address exceptions before filing

Do not ignore exceptions. Resolve them where possible before filing

• Clear old outstanding cheques by reissuing or reversing with proper documentation.
• Correct any client sub-ledger deficits by transferring funds from your operating account.
• Fix naming or signing issues with the bank so the account is clearly a trust account.
• Catch up on missing reconciliations and implement a monthly closing checklist.

Document what you did and when. Ask your CPA to include your remediation summary with the report if the form allows or to reference it in a note.

Step 9: Declarations and clauses

Complete the licensee declaration. It typically states that

• The information you provided is true and complete.
• You will notify the regulator of changes to the trust account.
• You understand your obligations regarding trust funds and records.

Read the CPA’s certification clause. It sets out the scope of their work and the level of assurance provided. It also notes their independence. Make sure their firm name, permit number, and date are included as required.

Step 10: Signatures

Sign where indicated

• Authorized signing officer of the licensee (e.g., director or officer).
• Printed name and title.
• Date and city.

The CPA must sign the accountant’s certification

• Signature of the CPA.
• Printed name, designation, and firm name.
• CPA permit or registration number.
• Date and location.

If the form requires a corporate seal, apply it. If the form requires a witness or commissioner, arrange that. Follow the signature instructions exactly. Missing or incorrect signatures cause rejections.

Step 11: Final review and submission

Before you submit

• Confirm the reporting period matches all attachments.
• Ensure the trust reconciliation balances to the penny.
• Check that the account title includes “Trust.”
• Verify that all pages and schedules are included and legible.
• Ensure the CPA’s bank confirmations have returned and are referenced.

Submit the report with your licence application or renewal. Meet the deadline noted by the regulator. Late or incomplete filings risk licence conditions or delays. Keep a full copy of the report and all working papers in your records. Maintain your reconciliations and supporting documents for the required retention period.

Step 12: Common pitfalls and how to avoid them

Avoid these frequent issues

• Using operating funds to cover trust shortfalls. This signals poor controls. Fix root causes and document the correction.
• Allowing negative client balances. Do not release funds you do not hold for that client.
• Failing to reconcile monthly. Set a calendar reminder and assign responsibility.
• Stale-dated cheques lingering for months. Follow up with payees and reissue as needed.
• Missing the word “Trust” in the bank account title. Ask your bank to correct it and get written confirmation.
• Relying on a related accountant. The CPA must be independent. Do not use your controller or a related party.
• Submitting without bank confirmations. Work with your CPA early so the bank can respond in time.

Step 13: Special cases

• If you have multiple trust accounts, provide a separate reconciliation and client listing for each. Tie each to its own bank statement and then to a consolidated total if needed.
• If there was no trust activity, still file the report. The CPA will state that no trust funds were received or held during the period. They will also confirm that proper controls are ready for when activity begins.
• If you switched banks mid-year, include reconciliations at the transition, final statements from the old account, and opening statements for the new account. The CPA will trace balances to ensure a clean handoff.
• If you use electronic payment processors, ensure deposits flow directly into your trust account. Provide settlement reports that tie to trust deposits. The CPA will test the completeness and timing.
• If you are winding down, provide the final reconciliation and proof that all funds were disbursed or dealt with under unclaimed property procedures, if applicable. The CPA will confirm the account is closed and the balance is zero.

You now know what the CONP0059 is, when to use it, why it matters, and how to complete it. Start early, keep your records clean, and work closely with an independent CPA. This keeps your licence compliant and your trust funds protected.

Legal Terms You Might Encounter

• Trust account. A bank account used only for client or consumer funds. You keep it separate from your operating account. The form asks your accountant to confirm that this account exists and is used correctly.
• Client funds. Money you collect or hold for a client or a consumer. This includes payments received, settlements, and retainers for plans. The form focuses on how you safeguard, track, and remit these funds.
• Remittance. The transfer of client funds to the rightful recipient. For a collection agency, that is usually your creditor client. For a debt repayment agency, it may be a consumer’s creditors under a plan. The form often requires your accountant to confirm remittances were authorized and timely.
• Reconciliation. A monthly process to match the trust bank balance to your trust ledger and records. Your accountant will review these reconciliations during the reporting period. The form expects your accountant to state whether reconciliations were prepared and accurate.
• Shortage. When the trust bank balance is less than the total of all client balances. A shortage signals risk to client funds. The form requires disclosure of any shortages and how they were resolved.
• Segregation of funds. Keeping client funds separate from business funds at all times. This includes using the trust account only for client money. The form asks your accountant to confirm that segregation was maintained.
• Independent accountant. A professional accountant in public practice who is not your employee or owner. They perform the review and sign the form. The form will require their firm information, signature, and date.
• Reporting period. The start and end dates your accountant examined. This period must be clear and consistent across the form and attachments. The form may be rejected if the dates are inconsistent.
• Material exception. A significant issue found in the review. Examples include missing reconciliations, unapproved withdrawals, or late remittances. The form gives your accountant space to describe any material exceptions and their impact.
• Books and records. The financial records that show money in and out of the trust account. This includes ledgers, journals, bank statements, and receipts. The form relies on your accountant’s review of these records to confirm compliance.

FAQs

Do you need to file the Accountant’s Report if you had no trust activity?

Yes. If you are licensed as a collection or debt repayment agency, you generally file the report for the period. Your accountant can indicate there were no trust transactions. You still need to show that you maintained a trust account, if required, and that your records are in order.

Do you need a professional accountant in public practice, or can your staff sign?

Use an independent professional accountant in public practice. Your in-house bookkeeper or controller should not sign. Independence helps ensure the review is objective and credible.

Do you include every trust account, including closed or inactive ones?

Yes. List all trust accounts that existed during the reporting period. Note open and close dates. Include reconciliations and bank statements for the months those accounts were active, even if the balance was zero.

Do you file this report only at year-end, or with your licence renewal?

You align the period with your renewal or as directed by the regulator. Your accountant’s report must clearly state the period and tie to your records. Confirm your renewal timeline and plan your accountant’s fieldwork early.

Do you still file if you never handle client funds?

If your business model never touches client funds, your accountant can report that fact. You may still need to complete the form to confirm your processes and accounts. Provide clear documentation to support the statement of no funds handled.

Do you have to provide bank confirmations and reconciliations with the form?

Be ready to provide them. Some filings require only the signed form. Others require selected schedules, reconciliations, or bank letters. Your accountant will need these documents to complete the review. Keep them organized in case the regulator asks.

Do you need a separate report for each branch?

Usually one entity-level report is prepared if all branches operate under the same licence and trust account framework. If branches use separate trust accounts or licences, your accountant may need to report by account or by licensed entity. Clarify the structure before work begins.

What if your accountant finds a shortage or control issue?

Address it immediately. Replenish any shortage, fix the process weakness, and document your actions. Your accountant will describe the exception in the form. You should be prepared to explain corrective steps and provide supporting evidence if asked.

Checklist: Before, During, and After the CONP0059 – Accountant’s Report – Collection or Debt Repayment Agency

Before signing: gather these items

• Licence details
• Legal name matching the licence
• Any trade names used in the period
• Licence number and effective dates
• Business information
• Mailing and operating addresses, including branches
• Responsible officer or manager contact
• Fiscal year-end and chosen reporting period
• Trust account details
• Bank name, branch, and account number(s)
• Account titles showing “trust” in the name
• Open/close dates for each account
• Copies of void cheques or account setup documents
• Bank records
• Bank statements for all trust accounts for the period
• Statements for the month after period-end to detect late items
• Bank confirmations or letters, if requested
• Trust bookkeeping records
• Monthly trust reconciliations with support
• Trust ledger for each client or consumer
• Trust receipts and disbursements journals
• Numbered receipts and deposit records
• Cheque registers and electronic payment logs
• NSF, chargeback, and reversal documentation
• Transaction evidence
• Client agreements authorizing fees and remittances
• Settlement statements, payment plans, and payout schedules
• Remittance reports sent to clients or consumers
• Proof of authorizations for any deductions from trust
• Policies and controls
• Written procedures for handling client funds
• Signing authority list for trust accounts
• User access controls in your accounting system
• Prior issues and changes
• Last year’s accountant’s report
• Corrections made to address past exceptions
• New branches, system changes, or bank changes during the period
• Engagement readiness
• Engagement letter with your accountant
• Contact person for document requests and walkthroughs
• Agreed timeline to meet your filing deadline

During signing: verify these items on the form

• Legal name and licence number match your licence exactly
• Reporting period dates agree with your records and your accountant’s work
• All active trust accounts for the period are included
• The accountant’s procedures are described as the form requires
• Any exceptions are clearly explained with dates and amounts
• All totals and cross-references tie to attached schedules
• No required field is left blank or marked “N/A” without reason
• The accountant’s firm details, designation, and contact information are complete
• The accountant has signed and dated the report
• Attachments required by the form are attached and labeled
• If the form directs initials or page numbering, ensure they are complete
• Keep a scanned copy of the fully executed package

After signing: file, notify, and store

• Submit the signed report using the filing method the regulator accepts
• If the report supports a licence application or renewal, file it together
• Confirm receipt and note any follow-up requests or queries
• If the accountant reported exceptions, start corrective actions right away
• Document your remediation plan and assign owners and timelines
• Inform the regulator of material corrections, if asked
• Store the signed report and key schedules in a secure repository
• Keep supporting records and reconciliations available for inspection
• Update your compliance calendar with next year’s due date
• Schedule mid-year health checks on reconciliations and controls
• Notify your accountant and the regulator if you open or close trust accounts
• Train staff on any new or revised trust procedures

Common Mistakes to Avoid

• Using an in-house or non-independent signer.
• Don’t forget: the signatory must be an independent professional accountant. Using staff or owners leads to rejection and delays.
• Mismatched names, numbers, or dates.
• Don’t forget: your legal name, licence number, and reporting period must match your records. Errors can cause return for correction or processing holds.
• Missing or weak trust reconciliations.
• Don’t forget: monthly reconciliations are essential evidence. Missing or inaccurate reconciliations can trigger extra review, conditions, or refusals.
• Unclear or incorrect trust account setup.
• Don’t forget: the account title should show it is a trust account. Using an operating account or commingling funds risks serious compliance findings.
• Not disclosing known exceptions or shortages.
• Don’t forget: disclose issues and how you fixed them. Omissions can escalate into enforcement, penalties, or licence action.

What to Do After Filling Out the Form

1. File the signed report by your deadline. Submit it with your application or renewal if required.
2. Track confirmation of receipt. Record the date, method, and any reference number.
3. If you discover an error after filing, consult your accountant. Prepare and submit an amended report if needed.
4. Share a copy with your internal leads. Include your compliance officer, finance lead, and branch managers.
5. Address any exceptions noted in the report.
6. Reconcile and correct balances
7. Refund or remit funds as required
8. Update procedures and access controls
9. Provide staff training and sign-offs
10. Document your remediation plan. Keep evidence of fixes ready for inspection.
11. Review your trust account structure. Ensure the account title, signing authorities, and online banking controls are correct.
12. Tighten your month-end routine.
13. Reconcile trust accounts by a set date each month
14. Review and sign off reconciliations
15. Investigate outstanding items older than 30 days
16. Schedule the next reporting cycle now. Book your accountant early, and align timelines with renewal.
17. Maintain a central binder or folder. Include the report, reconciliations, key policies, and checklists for easy retrieval.
18. Monitor changes that may require updates. Examples include new branches, new systems, or new trust accounts. Keep your accountant informed.