Employee Benefit Plan Audits

What is an Employee Benefit Plan Audit?

An Employee Benefit Plan (EBP) audit is an independent review of a company’s retirement or welfare benefit plan. For organizations with 100 or more participants with account balances as of the first day of the plan year, these audits are a mandatory annual requirement under the Employee Retirement Income Security Act (ERISA). The primary purpose is to ensure that the plan is operating in accordance with its legal documents and that its financial statements are presented fairly.

A quality audit does more than just check a compliance box. It safeguards the financial integrity of the plan, protects the assets of your employees, and helps plan sponsors fulfill their fiduciary responsibilities. It provides assurance that contributions are being handled properly, assets are secure, and benefits are correctly paid.

Key Benefits of a Quality EBP Audit

Choosing the right auditor is crucial. A thorough EBP audit delivers significant value beyond a simple compliance report.

• • Ensure ERISA Compliance: Avoid significant penalties from the Department of Labor (DOL) for non-compliance or a deficient audit report.
  • Reduce Fiduciary Risk: A quality audit helps you identify and correct operational errors, protecting plan fiduciaries from potential liability.
  • Improve Operational Efficiency: Uncover inefficiencies in plan administration and strengthen internal controls to streamline operations and reduce the risk of fraud.
  • Enhance Participant Confidence: Demonstrate to your employees that their retirement savings are being managed responsibly and are secure.