Charging Policy of R E Murphy & Co
Schedule of Hourly Rates
IPAA Guide to Level of Insolvency Experience Classification
CHARGING POLICY OF R E MURPHY & CO
At R E Murphy & Co, we charge for the work carried out by us on a time basis in the majority of administrations which we undertake. Record of this work is maintained on a comprehensive and integrated database which has been specifically designed for us and our particular requirements of meeting the high standards of accountability which is expected of us. Our clients will then be charged for time necessarily spent by the professional and support staff engaged on our administrations, at rates published by us from time to time for the various Classifications. Detailed reports and access to this information can be made available to creditors and other parties relevant to each administration when this is required.
ITEMS WE DO NOT CHARGE TO CLIENTS OF R E MURPHY & CO
In our office, charging clients with time spent by support staff is very limited. The following items are NOT CHARGED by support staff.
1. Preparation of internal bills/invoices to clients/fee applications – we do not charge for any time associated with preparing bills/invoices or fee applications. Any task associated with preparing bills/invoices/fee applications or arranging for payment of those is NOT CHARGEABLE. This includes:
- searching database to find a total remuneration or outlay charge for a client for a period;
- printouts of outlays or remuneration;
- preparation of bills/invoices
- reconciliation of bills/invoices between the client records and REM billing records;
- drafting invoices to forward to clients;
- correspondence or contact with clients in relation to payment of their account;
- receipting cheques from clients;
- drawing cheques for remuneration/outlays;
- contact or correspondence with bank requesting transfer of remuneration/outlays from client account to our account
- preparing fee applications to send to solicitors for Court approval of remuneration;
- preparation of remuneration material for reports to creditors and meetings of creditors.
2. Answering Calls and Taking Messages – is not charged to a client. Basically, the only staff that charge for telephone calls are the professional staff when dealing with an administration’s matters.
3. Faxing and Photocopying – general sending or receipting faxes or carrying out photocopying is not charged to a client.
4. Filing – is mainly attended to by our filing specialist whose time is not charged to a client.
5. General Administrative Duties – administrative duties of any kind are not charged to a client
6. Mail/Postage – The time spent in handling the daily mail received and dispatched is not charged to a client. In the case of mailouts of circulars and reports to creditors, the actual time spent will be charged to the client.
7. Town Work – town work is not charged to a client, except for client banking, deliveries, or lodging documents at ASIC or Supreme Court, which will be charged as they occur.
8. Internet Use – internet use is not charged to clients unless it is a necessary part of professional investigations.
9. Emails – time spent by support staff in dealing with emails is not charged to clients. Time spent by professional staff is charged when related to a client’s affairs.
10. Drawing Cheques – drawing cheques is not charged to a client by any staff member apart from the principal who deals with the approval and payment process.
11. Typing documents / correspondence/ASIC documents/facsimiles – time spent by support staff in typing documents or correspondence or ASIC documents or facsimiles is not charged to a client.
12. Using reminder system / maintaining checklists – the use of these is not charged to a client by support staff
13. Receipting Cheques – are not charged to a client by support staff.
14. Internal Conferences – internal conferences are only to be charged to clients by the professional staff and support staff where these relate directly to the work being undertaken for clients.
Should you wish to discuss any of these matters, please feel free to contact us.
SCHEDULE OF HOURLY RATES
Current from 1st July, 2007
| Classification |
$/hour |
| Partner |
420 |
| Director |
340 |
| Manager 1 |
300 |
| Manager 2 |
255 |
| Supervisor |
215 |
| Senior 1 |
185 |
| Senior 2 |
155 |
| Intermediate 1 |
140 |
| Intermediate 2 |
120 |
| Secretary/WPO |
125 |
| Computer Operator |
115 |
| Clerk |
95 |
| Typist |
85 |
| Junior |
65
|
These rates do not include GST, are subject to periodic review and are to be used along
with the IPAA Guide to Insolvency Experience Rate Classification – 1st July, 1999:
IPAA Guide to Level of Insolvency Experience Classification
| Principal appointee/Partner |
Registered liquidator/trustee, his or her partner bringing specialist skills to the insolvency task |
| Director |
Minimum of twelve years insolvency experience, at least five years at manager level, qualified accountant and capable of controlling all aspects of an administration. May be appropriately qualified to take appointments in his/her own right. |
| Manager 1 |
More than 7 years insolvency experience, more than 3 years as a manger, qualified accountant. Answerable to the appointee but otherwise responsible for all aspects of administration. Experienced at all levels and considered very competent. Controls staff and their training. |
| Manager 2 |
6-7 years qualified accountant, with well-developed technical and commercial skills. Should be constantly alert to opportunities to meet clients needs and to improve the clients future operation either by revenue enhancement or by reducing costs and improving efficiency. Controls 2-4 staff |
| Supervisor |
4-6 years. Professional Year (PY) complete. Will have had conduct of minor administrations and experience in control of 1-3 staff. Assists planning and control of medium to larger jobs |
| Senior 1 |
2-4 Years. PY (or equivalent) would normally be completed within this period. Assists planning and control of small to medium sized jobs as well as performing some of the more difficult work on larger jobs. |
| Senior 2 |
1-2 years. PY (or equivalent) would normally be commenced during this period. Required to control the fieldwork on small jobs and is responsible for assisting complete fieldwork on medium to large jobs. |
| Intermediate 1 |
0-2 years. Graduate with little or no professional experience. Required to assist in day-to-day fieldwork under supervision of more senior staff |
| Intermediate 2 |
0-1 year. Trainee undertaking a degree with an accountancy major. Required to assist in day-to-day fieldwork under supervision of more senior staff. |
| Secretary/WPO |
Appropriate skills |
| Computer Operator |
Appropriate Skills |
| Clerk |
Non-qualified but passed the HSC. Classification would depend on experience, salary and complexity of work to be conducted |
| Typist |
Appropriate skills |
| Junior |
HSC. Plans to undertake at least part-time degree/diploma. Required to assist in administration and day-to-day field work under supervision of more senior staff |
The job descriptions above do not cover professional staff who are unqualified and not studying to become qualified as accountants. The Association recognises that in this latter category there are some people who are highly skilled. The National Committee believes it is not possible to give a description which will adequately cover all situations. The practitioner should therefore decide what is the appropriate charge-out rate and be prepared to justify that decision.
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