Trust Accounting and Financial Statement Preparation Assistance for Plan Sponsors and Auditors:
- Trust accounting is a key component of plan management and operation. The byproduct of the trust accounting function is the preparation of financial statements for the plan and trust.
- Management is responsible for the preparation of the financial statements included in the Annual Report.
- It is the responsibility of the independent auditors to report on the fair presentation of the financial statements.
- Trust accounting procedures help trustees accurately record operating transactions and include balance sheets, income statement and reconciliation of contributions, earnings, other income, expenses, and distributions to plan participants.
- Accurate reporting of assets, liabilities, expenses, income, payables and receivables.
- Complete proper asset reconciliations including asset classifications necessary for inclusion in the Annual Funding notice and Form 5500.
- Retirement plan accounting involves reconciliation of the total assets held in a trust.
- Provides information that is required for governmental reporting and disclosure as part of the annual Form 5500 filing process.