Center Releases Plan Advisory on Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions
To assist you in your efforts to obtain quality information from your plan audit clients, the Center has prepared a Plan Advisory, Effective Monitoring of Outsourced Plan Recordkeeping and Reporting Functions. The Plan Advisory is intended to help plan sponsors, administrators, and trustees in fulfilling their fiduciary responsibilities and in understanding the importance and benefits of establishing an effective monitoring program over third-party service providers.
The Plan Advisory contains useful information and tips on selecting and monitoring service providers; the importance of quality plan accounting information; monitoring TPA controls over plan accounting information; and special considerations for different types of plans (defined benefit, defined contribution, and health and welfare plans.) It also includes suggestions for conducting on-site reviews of service providers and provides examples of controls that help ensure complete and accurate plan accounting information and reporting, and how obtaining a SAS 70 report can help the plan fulfill its responsibilities.
We encourage you to share the Plan Advisory with your plan audit clients. Attached is a low resolution PDF version of the Plan Advisory that can be printed directly to a desktop printer or sent electronically. Center members may reprint and reuse all or portions of the Plan Advisory for intrafirm or client use or otherwise in connection with their practice, as long as no portion is directly offered for sale or profit. (A high resolution version in booklet format is available on the Center website which can be used for offset printing. Instructions for offset printing in booklet format are available on the Center website.)
The Center has also prepared the attached sample transmittal letter for you to send to your plan audit clients with the Plan Advisory, or you may prefer to have face-to-face discussions. You may also find the Plan Advisory useful in conjunction with communicating internal control related matters identified in your audit of the plan as required by SAS No. 112.
We hope you find the Plan Advisory useful and welcome your feedback.
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Electronic Filing of Form 5500 Extended Until Jan. 1, 2009
DOL officials have recently announced that the requirement to electronically file the Form 5500 has been extended from January 1, 2008, to January 1, 2009. This means that Form 5500 will now have to be filed electronically for plan years beginning on or after January 1, 2009. The electronic filing requirement will be implemented as part of EFAST-2, a wholly electronic filing system for the 2009 plan year. DOL intends to issue guidance regarding short plan year transition issues and direct filing entities.
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Savings on Professional Liability Insurance for EBPAQC Members
The Center is also pleased to offer a new benefit to Center members in recognition of your commitment to performing quality audits. The AICPA Professional Liability Insurance Program will award a new premium credit to firms that are members of the Center.
Aon Insurance Services*, CNA**, and the AICPA have joined forces to offer firms a 5% premium credit for membership in either the Employee Benefit Plan Audit Quality Center or the Governmental Audit Quality Center. Firms who are members of both Audit Quality Centers will receive up to a 10% premium credit (maximum amount of the credits is $400 per policy).
Applications for the AICPA Professional Liability Insurance Program now include a check box for EBPAQC and GAQC members. If you are currently insured in the Program, simply check the appropriate box on your renewal application and the premium credit will be awarded at your annual renewal. New applicants who indicate that they are members of one or both of the Centers will receive the premium credit as of the policy's effective date.
For more information about the Premium Credit Program, visit www.cpai.com/qualitycenter.
*Aon Insurance Services is a division of Affinity Insurance Services, Inc.: in CA, MN & OK, (CA Insurance License #0795465) Aon Insurance Services is a Division of AIS Affinity Insurance Agency, Inc.; and in NH & NY is a Division of AIS Affinity Insurance Agency.
**One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states. CNA is a service mark registered with the United States Patent and Trademark Office. Copyright © 2007 CNA. All rights reserved.