The Department of Labor (DOL) and the Employee Retirement Income Security Act of 1974 (ERISA) are the government mandates for a pension plan audit. Generally, plans with 100 participants at the beginning of the plan year are required to file as a “large” plan which triggers the audit requirement.
Most credit union pension plan audits can be performed in accordance with the DOL’s Regulation 2520.103-8 which permits a limited-scope audit. Under a limited-scope audit the auditor does not apply audit procedures to information on plan investment assets and related transactions prepared and certified to as both complete and accurate by a bank, or insurance company that is supervised and regulated and subject to periodic examination by a state or federal agency. A DOL limited-scope audit involves less audit work and may be significantly less costly than a full-scope audit.
The limited-scope audit does not reduce the testing of contributions, distributions, allocations to participants’ accounts, or ensuring all employees eligible for plan participation are given the opportunity to enroll in the Plan.
We design our audits of pension plans not only to satisfy the Department of Labor’s (DOL) audit requirements, but also to identify opportunities to improve Plan administration efficiency.Like our other audit services, we produce a Management Report containing recommendations to improve Plan practices, operational procedures, and internal controls. Our recommendations will help you safeguard assets; ensure soundness; and monitor and evaluate finances, operations, and Management decisions.
Our goal is to continue to enhance our quality initiatives within our employee benefit plan audit practice to deliver the highest quality audit services possible.