CSD-RT RFP Recordkeeping_Administration Services Response 3-

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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. Click VALIC.com 55
Control Objective 3- Controls provide reasonable assurance that remittances are credited to participant accounts
accurately, completely, and in accordance with instructions received from plan sponsors or participants.
VALIC Control Activities Tests of Operating Effectiveness Results of Tests
3.6 Quarterly reconciliations are
performed and reviewed/
approved by management to
ensure that all bank balances are
reported accurately. Separate
general ledger accounts are
established for each bank account.
Cash account reconciliations are
prepared and completed according
to the AIG corporate account
reconciliation policy.
Test performed by the FCU team:
Inspected a sample of bank reconciliations
and supporting documentation to
determine whether the reconciliations
were completed and reviewed by a
manager in accordance with policy.
For unreconciled differences, inspected
evidence to determine they were
identified, researched and resolved.
For each account selected:
• • Determined whether a reconciliation
existed for the account.
• • Traced the bank balance per the
reconciliation to the bank statement
of the account.
• • Determined whether there were
separate G/L accounts for each
bank account.
• • Determined whether the reconciliation
agreed to the G/L.
• • Determined whether the supporting
documentation referenced the
reconciliation adequately.
No exceptions noted.
3.7 Deposits are reviewed to
confirm amounts are correct.
Batch Balancing is reviewed
for completeness and if not,
resolved between the bank and
team prior to processing in the
participant account.
Inspected a sample of checks not in
good order sent to VALIC to determine
whether the checks were researched
and appropriately accounted for
within the system. For checks that
were resolved, inspected evidence
to determine whether the check was
deposited in the VALIC bank account.
Inspected evidence to determine
whether VALIC sent a letter to the
client notifying them of the issue.
No exceptions noted.
IV. VALIC control objectives and controls, and PricewaterhouseCoopers LLP's tests of operating
effectiveness and results of tests