Employee Benefit Plan Audit Checklist

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[   ]  Make note that the employee benefit plan audit is due seven months after the plan year-end and can be extended for an additional two-and-a-half months.  This is 7/31 with an extension to 10/15 for calendar year plans.

[   ]  Review all new plan documents, amendments and updated policies.  Ensure your plan is compliant with newly published IRS regulations.

[   ]  Review service provider agreements and verify that they have met their contractual duties and accurately charged fees.

[   ]  Ensure proper ERISA insurance is in place to protect against claims of breach of fiduciary duties.

[   ]  Review the investment policy statement and ensure that all investments comply and verify the appropriate performance of each investment option.

[   ]  Examine a summary of all payroll remittances to determine if any should be considered “delinquent” per DOL guidance.  Any corrections should be made as soon as possible. Coordinate with your third-party administrator and auditor to ensure that any corrections are made appropriately and timely.

[   ]  Review your service provider’s annual SOC report(s) to ensure that duties such as reviewing and approving benefit payments and locating lost participants are being performed.

[   ]  Verify the accuracy of all participants personal data, employment/enrollment history, and beneficiary designations, especially for new subsidiaries or divisions in which audit issues tend to arise.

[   ]  Determine that all compensation types paid during the year were treated consistently with the plan’s definition of eligible compensation.  Coordinate with your third-party administrator and auditor to ensure that any corrections are made appropriately and timely.

[   ]  Prepare and approve the annual census & questionnaires and reconcile year-to-date compensation, retirement plan deductions, and employer contributions to payroll reports.  Obtain and review annual compliance packages including nondiscrimination tests like ADP/ACP and top-heavy tests.

[   ]  Obtain a draft of form 5500.  This is typically prepared by the plan’s custodian or third-party administrator.

[   ]  Organize all necessary reports and documentation for the auditor.