EBSA Questions 403(b) Audits
Posted on Sat, Jan 01, 2011
The Department of Labor’s Employee Benefits Security Administration (EBSA) is questioning 403(b) opening account balances for plan year 2009.
At a recent meeting of the American Institute of Certified Public Accountants (AICPA), Scott Albert, chief of the EBSA’s reporting and compliance division told the audience the high percentage of “clean” audits for 2009 raised some questions.
The 2009 filings are the first being audited under the new 403(b) regulations that were finalized in 2007. Despite a large number of plans that had participant investments in annuity contracts, the vast majority of the 3,500 403(b) 5500s for 2009 made no mention of problems producing opening balances for their audits.
The DOL had previously issued 5500 reporting relief for pre-2009 contracts in field assistance bulletin 2009-2. The department said they would not reject a 5500 based on a qualified, adverse or disclaimed audit opinion if the opinion was a result of pre-2009 contract issues.
Even with the relief offered by the DOL, so few 403(b) audits had opening balance issues that the EBSA now plans to follow up with the 403(b) filers. Albert reported he was considering sending out inquiry letters to sponsors and meeting with members of the AICPA’s 403(b) Plan Audit Joint Task Force regarding the high clean audit percentages.
