Should the monthly reconciliation provisions of Pennsylvania Rules of Professional Conduct 1.15 and Rules of Disciplinary Enforcement 221 be rescinded?

One of the least-followed rules and least understood rule has been the reconciliation rule. The reconciliation rule is found in two places. First, it is found in Rule of Professional Conduct 1.15(11)(c). This rule applies to the IOLTA or non-IOLTA escrow accounts. The rule, under Subsection (c)(2) requires a separately maintained ledger, which includes the pay, date, purpose, and amount of each check, withdraw and transfer, the amount involved in each transfer and deposit. A lawyer has to maintain an individual ledger sheet for each trust client showing the source of all funds. Under Subsection (c)(4), it requires that a regular trial balance on the individual ledger sheets be maintained. There has to be a reconciliation each month so the balance on the ledger sheets agrees with the balance in the IOLTA or trust account. These reconciliation records have to be maintained for five years.