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13th ANNUAL RUTGERS GOVERNMENTAL ACCOUNTING & AUDITING. George Henein, CIA,CISA CFE,CFSA,CGAP Monday, 18 December, 2006. Pension Fund Audit. Key Operational Risks. Operational Risks of Pension Funds. Legislation/Legal Actions/Court Decisions Administration Board of Trustees
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13th ANNUAL RUTGERS GOVERNMENTAL ACCOUNTING & AUDITING George Henein, CIA,CISA CFE,CFSA,CGAP Monday, 18 December, 2006
Pension Fund Audit Key Operational Risks
Operational Risks of Pension Funds • Legislation/Legal Actions/Court Decisions • Administration • Board of Trustees • Audit Committee • Executive • Strategic Planning • Staffing • Attracting, Training, Maintaining, Promoting, and Retaining Employees • Managing Employees • Segregating Duties
Operational Risks Cont’d • Enrollment of Members • Employment and Enrollment of New Members • Communication with New Members • Benefit Formula • Name; Address; Birth Date; Gender; Marital Status; Social Security Number; Beneficiaries • Collection & Maintenance of Member Data • Payroll Data • Changes to Member/Retiree Data • Maintenance of Member/Retiree Data
Operational Risks Cont’d • Communications with Members • Member Statements • Retirement Estimates • Retirement Planning Services • Customer Service • Publications • Internet Access to Information • Customer Call Center • Field Presentations • Unclaimed Member Accounts and Unclaimed Benefits
Operational Risks Cont’d • All Benefits • Withdrawals/Refunds • Disability Retirement Benefits and Estimates • Retirement Benefits • Defined Benefit Program • Defined Contribution Plans • Deaths/Survivor Benefits
Operational Risks Cont’d • Actuary • Assumptions • Assets/Liabilities • Actuarial Computer Program (Algorithm) • Data • Employer Contribution Rates • Second Opinion • Employer Contract Changes-Cost of Providing Estimates of Potential Changes to the Benefit Structure
Operational Risks Cont’d • Communication with Employers • Employer Responsibilities • Member Services • Contribution Rates • Contributions • Employer Contract Amendments • Contracting with Suppliers of Goods and Services • Operations Contracts • Third-Party Administrator (TPA) Contracts
Operational Risks Cont’d • Business Continuity Planning • Cash Forecasting • Depositing Cash • Managerial Accounting & Reporting • Financial Accounting & Reporting by Management
Operational Risks Cont’d • External Audit Risks • Internal Audit Risks • Consultants • Information Systems and Acquisition • Information Security • Legal Services
Questions? Thank You for Your Time!!