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.