Contribution Allocation Testing

Purpose

The purpose of contribution allocation testing is to determine that contributions have been allocated to individual participant accounts in accordance with the participant elections. A sample of contributing participants are selected, and the contribution is recalculated based on the contribution and percent elected for each investment fund.

Testing

The contribution amounts and allocations are as of the plan year end due to reporting restrictions by the recordkeeper. AuditMiner recommends the auditor replace the year end allocation with a pay period during the year if the SOC 1 report does not address contribution allocations. If the contribution allocation changed during the year, there will be a variance for which the auditor will want to investigate further, if deemed necessary.

Sample

A selection of participants is made from the total population of participant contributions or participants receiving contributions during the year. The workpaper will include the following information regarding the sample:

1. Population Source: Contributions from the Participant Activity Detail Package (All Money Sources)
2. Population Amount: Total Contributions
3. Population Count: Participants with contributions (all money sources)
4. Sampling Unit: Participant
5. Seed Number: This number can be used to regenerate the sample selection
6. Sample Methodology: Sample methodology chosen by auditor. 

Testing Procedures

AuditMiner testing procedures are as follows:

1. Verified contribution amount agrees to the recordkeeper history.
2. Verified percent elected agrees to the investment allocation identified on the recordkeeper website (percent elections are addressed by SOC 1).
3. Verified percent elected agrees to a participant confirmation or participant signed election form (percent elections are not addressed by SOC 1).