Beginning with the 2009 Form 5500 filings, employee benefit plans under Section 403 (b) of the Internal Revenue Code which fall sponsored by nonprofit organizations under the Employee Retirement Income Security Act of 1974. (ERISA) will follow the same requirements for the reporting and verification, which is currently available for 401 (k) plans. These audited financial statements is a required attachment to the form of the plan 5500th This requirement applies to commercial ornot-for-profit organizations and non-governmental or religious organizations not subject to ERISA, as a rule. 403 (b) plans with more than 100 eligible participants from the beginning of the year by this new requirement.
Although the new Form 5500 reporting and independent auditing requirements are not effective until 2009, the Form 5500 filing, if your plan meets the requirement to have completed an independent review of the plan year31. December 2009, the plan must also include certain annual comparative financial information of the plan at the end of 2008. This comparative year information from the Department of Labor (DOL) is required in order to be included in the financial statements of the plan, first in the reporting year. Required information includes the current value of the investment plan, and the amount of Employer contributions to the plan payable, accounts payable and accrued expenses as ofEnd of the plan year. In preparation for these new requirements, recommends the Employee Benefit Plan Audit Quality Center that plan administrators take the following ten steps:
1. Understand how the new DOL 403 (b) the accounting and auditing requirements will affect your plan. You should determine your plan's Form 5500 reporting and audit requirements. D. Richards with Business and Accounting Solutions, a company that will benefit employees of CPA examsGermany said: "It is important that you do relatively early CPA, if your company is the right knowledge and skills to carry out the assessment would be appropriate to establish. An experienced CPA will ensure that you are meeting the new requirements be supported. "
2. Share the responsibility for the accounting function of the plan. A natural person must be appointed to ensure that the plan comply with the reporting responsibility.
3. Hire a qualified independent auditors for their403 (b plan) to. Make sure that the auditor is experienced with defined benefit plans. Ask the potential examiners, if they are a member of the staff of the AICPA's Benefit Plan Audit Quality Center. The center is a national community of CPA firms that a commitment to employee benefits plan to demonstrate the quality of the audit and to increase awareness about the importance of ERISA audits. In addition, the members of the Employee Benefit Plan Audit Quality Center is required to complythe highest quality standards through a voluntary agreement with the Center membership requirements, which makes the determination of a competent contact for our employee benefit plan audit practice, establishing quality programs, conduct annual internal control procedures and peer review of the results publicly available are.
4. Communicate with your service provider may need information on the plan. Ask the provider if they are able to offer you thenecessary information for your plan's financial statement audit and form 5500th So ask your service provider if they are available a "SAS 70" report on the internal controls put in place to make your plan, the transaction process.
5. Determine what must be 2008, the comparative financial information 403 (b) plan.
6. Make sure you plan participant records are complete and correct.
7. Get your plan in the books and records in shape.
8. Provide adequate internal controlsThe plan of financial reporting.
9. Make sure you know that the plan is one to-to-date written plan document and an investment policy.
10. Make sure that the plan is in compliance with tax exemption of the plan.
