Transcript Pension Fund Audit - Rutgers University
13th ANNUAL RUTGERS GOVERNMENTAL ACCOUNTING & AUDITING
George Henein, CIA,CISA CFE,CFSA,CGAP Monday, 18 December, 2006
Pension Fund Audit
Key Operational Risks
I.
II.
III.
A.
B.
C.
A.
B.
C.
D.
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 December 18, 2006 3
Operational Risks Cont’d
IV.
A.
B.
C.
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 V.
A.
B.
C.
Collection & Maintenance of Member Data Payroll Data Changes to Member/Retiree Data Maintenance of Member/Retiree Data December 18, 2006 4
Operational Risks Cont’d
VI.
A.
Communications with Members Member Statements B.
C.
D.
E.
F.
G.
H.
I.
Retirement Estimates Retirement Planning Services Customer Service Publications Internet Access to Information Customer Call Center Field Presentations Unclaimed Member Accounts and Unclaimed Benefits December 18, 2006 5
Operational Risks Cont’d
VII.
All Benefits VIII.
Withdrawals/Refunds IX.
Disability Retirement Benefits and Estimates X.
A.
B.
Retirement Benefits Defined Benefit Program Defined Contribution Plans XI.
Deaths/Survivor Benefits December 18, 2006 6
Operational Risks Cont’d
0011 0010 1010 1101 0001 0100 1011 XII. Actuary A.
Assumptions B.
C.
D.
E.
F.
G.
December 18, 2006 Assets/Liabilities Data Actuarial Computer Program (Algorithm)
1
Employer Contribution Rates Second Opinion Estimates of Potential Changes to the Benefit Structure
4
2 5 7 3
Operational Risks Cont’d
XIII. Communication with Employers A.
B.
C.
D.
E.
Employer Responsibilities Member Services Contribution Rates Contributions Employer Contract Amendments XIV. Contracting with Suppliers of Goods and Services A.
B.
Operations Contracts Third-Party Administrator (TPA) Contracts December 18, 2006 8
Operational Risks Cont’d
XV.
XVI.
XVII.
XVIII.
XIX.
Business Continuity Planning Cash Forecasting Depositing Cash Managerial Accounting & Reporting Financial Accounting & Reporting by Management December 18, 2006 9
Operational Risks Cont’d XV.
External Audit Risks XVI. Internal Audit Risks XVII. Consultants XVIII. Information Systems and Acquisition XIX. Information Security XX.
Legal Services December 18, 2006 10
Questions?
Thank You for Your Time!!
December 18, 2006 11