258 / 499
This report is intended for use by the management of the Variable Annuity Life Insurance Company ("VALIC") and its subsidiaries.
VALIC Retirement Services Company ("VRSCO") and VALIC Financial Advisors, Inc. ("VFA"), its user entities, and the independent
auditors of its user entities, and is not intended and should not be used by anyone other than these specified parties.
Back to TOCClick
VALIC
.com 51
Transaction processing controls
Contract/Plan Administration
Control Objective 1
- Controls provide reasonable assurance that plan parameters are set up in the system
accurately, completely and in accordance with the plan document for new plans.
VALIC Control Activities
Tests of Operating Effectiveness
Results of Tests
1.1 An independent quality review is
performed for new plan setups to
ensure the plan documentation
and data input agree.
Inspected a sample of Mutual Fund and
Annuity new plan setups for supporting
documentation to determine whether
the Mutual Fund/Annuity setup was
quality reviewed by an independent
team member.
No exceptions noted.
1.2 Applications for enrollments
are reviewed for in good order
processing prior to establishing
new participant accounts on the
record keeping systems.
Inspected a sample of new annuity and
mutual fund accounts to determine
whether data elements were received
and able to be processed prior to
establishing new participant accounts
in V- System.
No exceptions noted.
1.3 An independent quality review is
performed on a minimum of 10%
of enrollments to verify good order
and accuracy.
Inspected a sample and compared
annuity and mutual fund plans set up
to determine whether Account Set-up
team performs a quality review of 10%
or more of new accounts.
No exceptions noted.
1.4 An independent quality review
is performed for plan sponsor-
initiated variable mutual fund
adds, changes, and/or deletes
to ensure the plan amendment/
agreement or other plan sponsor
documentation and data
input agrees.
Inspected a sample of group
amendment requests initiated by
plan sponsors for variable mutual
fund additions, changes and/or
deletions to determine whether quality
review checklists were prepared and
approved. If any discrepancies were
noted in the quality review checklist,
determined whether the discrepancies
were followed up and resolved.
No exceptions noted.
1.5 New fund requests are reviewed
and set up in the record keeping
system and UVT reconciliation is
performed then and subsequently
reviewed by management.
Inspected a sample of new fund
setups to determine whether VPA
team performed a reconciliation of
information input to the fund request
from the Implementation Team and a
review was performed by management.
Reperformed a sample of VPA’s
reconciliation for the new fund setups
to determine whether fund was set up
accurately in V- System and UVT.
No exceptions noted.
No exceptions noted.
IV. VALIC control objectives and controls, and PricewaterhouseCoopers LLP's tests of operating
effectiveness and results of tests