Safeguarding Plan Assets with Internal Controls

Minimize opportunities for errors or fraud in your employee benefit plan and discover small issues before they become big problems with an effective system of internal control.

Segregation of Duties
Generally, the person responsible for approving a transaction should not also be the one recording it.

Assign Qualified Personnel
Individuals and committees assigned to process transactions or monitor the plan should be competent and have a thorough understanding of their roles.

Sound Procedures
Procedures for authorizing and recording transactions should be standardized and well documented.

Service Organization Controls
Request and review SOC reports to understand the controls in place at service organizations and whether they are operating effectively. Consider complimentary controls which must operate effectively at the plan level.

The 2021 Plan Sponsor's Desk Reference is full of information relevant to HR, accounting, and finance professionals responsible for administering these plans. Download here.

Schreiber Accounting and Advisory offers plan audit services for 401(k) and 403(b) plans, as well as other types of employee benefit plans. Contact the firm for more information.

Material discussed is for informational purposes only. It is not to be interpreted as investment, tax, or legal advice. Individual situations vary, and this information should only be relied upon when coordinated with individual professional advice.