What does the 403(b) audit regulation change mean for your organization?
Starting with plan year 2009, certain nonprofits that sponsor a 403(b) plan will be subject to the same reporting and audit requirements that currently exist for 401(k) plans. ERISA plans with more than 120 eligible participants will now be required to file a Form 5500, which must be accompanied by an annual audit of the financial statements. The Department of Labor (DOL) requires comparative financial periods to be presented on the statement of net assets available for benefits.
Are you able to answer these questions?
- Will the new 403(b) regulations affect my organization?
- What will a 403(b) audit entail?
- Why is it important to prepare now for the 2009 audit?
Let the dedicated employee benefit team at Belfint, Lyons & Shuman assist you with these new complex legislative changes and ensure you are in compliance with the current regulations.
How can BL&S assist you with preparing for your first 403(b) audit?
- Assess whether there are inconsistencies with your plan documents and plan operations.
- Assist you in identifying all eligible employees.
- Show you how to track hours of service to ensure compliance.
- Help you identify and locate any "missing" plan participants.
- Help you create a methodology that ensures proper plan administration.
When your organization requires an audit, give yourself peace of mind by entrusting BL&S to perform your audit. Below is a sampling of the tasks involved in an employee benefit plan audit:
- Verify consistency of plan document, summary plan description, adoption agreement, all amendments to the plan with the terms of investment contracts offered under the plan
- Verify completeness of asset balances and contributions
- Obtain investment agreements and contracts and verify that exchanges comply with the plan provisions
- Verify universal availability is being observed
- Identify all eligible, seasonal and temporary employees
- Verify the accuracy and completeness of all participant data
- Verify employee contributions do not exceed plan limits
- Verify deferral deposits are timely
- Confirm contributions are properly recorded and allocated
- Test participant contributions and benefit payments
- Confirm loans were processed correctly
- Prepare and/or review Form 5500 and Summary Annual Report
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