What does a SAS 70 mean to a Plan Sponsor?
• It is important to keep in mind that auditors, under professional standards, cannot be a part of a plan’s internal control. • Controls of a benefit plan are comprised of controls at the plan sponsor as well as at service organizations. • SAS 70’s are reports on the design of internal controls (Type I) and operating effectiveness (Type II) at a service provider. • Outlines what user controls are required. • Not only useful for the Auditor! • Review by Plan Management at least annually as part of the third party service provider monitoring effort is good practice. How TPA’s Can Help • Share PBC listing with the TPA • Audit Package • SAS 70 • Documentation of participant transactions • Form 5500 • Testing results What Should the TPA Provide? • Organized audit package • Detailed listing of participant balances • 157 information • Draft Form 5500 and all related schedules • Compliance and discrimination testing • Allocation of employer contributions • Loan roll-forward report/delinquent l
