Inside a DOL Audit

Among those advisors lucky enough to have been through a DOL audit, most wish that their clients had been better prepared, with all requested documents and materials gathered ahead of time. In the wake of the 408(b)(2) rules, the DOL’s Philadelphia region recently updated the list of documents that they typically request during an audit. (We posted about this last month, here.) The list is lengthy and although the DOL will typically work with the plan sponsor if additional time is needed to produce the documentation, it’s certainly better to have it ready, which is good practice anyway. The DOL’s request list includes: Plan documents and trust agreements with amendments Summary Plan Description Insurance, including fiduciary liability Internal income statements and balance sheets IRS determination letters Applicable committee meeting minutes regarding: • Plan activities • Service provider selection • Investment selection RFPs and responses Financial records Service provider contracts 5500 Forms with audited financials Extensive requests for documents regarding fees and costs (direct and indirect) List of fiduciaries with dates of service ERISA compliance documents Board of Directors Benefits received by the plan sponsor as a result of service provider selection The IRS also released a chart detailing the examination process.