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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.
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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
3.12 An error report is generated from
the record keeping system daily
for any payment that does not
apply to a loan. The exceptions
are researched, corrected and
processed upon resolution.
Inspected a sample of error reports
and corresponding AWD Work
History to determine whether errors
were reviewed and resolved by the
Loan CSP.
No exceptions noted.
3.13 Bank-rejected checks or
individual ACHs for loan
payments are reversed out
of the record keeping system
by the Loan CSPs from each
participant’s affected account.
Inspected a sample of returned checks
and rejected ACHs to determine
whether they were reversed from the
participant’s account. For NSF voided
checks, inspected evidence to determine
whether letter was sent to participant
requesting replacement funds and
replacement funds were received and
applied to appropriate accounts.
No exceptions noted.
3.14 Management reviews a report
daily to ensure Common Remitter
remittances are processed.
Inspected Daily System Reconciliation
policy and procedure to determine
whether it is maintained.
Inspected a sample of reconciliations
of unprocessed remittances to
determine whether they were
completed by an Analyst and reviewed
by a Team Manager. If discrepancies
were identified, inspected the
reconciliation for evidence that the
team members identified, researched
and resolved the discrepancy.
No exceptions noted.
No exceptions noted.
3.15 An index file of the scanned
documents is routed to AWD
for processing. The job that
routes the image file to AWD is
monitored for processing.
Observed evidence of the Windows
service used to transfer the index file
of the scanned documents to AWD.
Observed the configuration to
monitor for errors to determine
whether notifications are sent to the
appropriate individuals in the event of
a process failure.
No exceptions noted.
No exceptions noted.
3.16 Complaints are monitored by
management and the Consumer
Affairs Department.
Inspected a sample of monthly
complaint reports to determine
whether customer complaints are
monitored by VALIC Management and
the Compliance Department.
No exceptions noted.
IV. VALIC control objectives and controls, and PricewaterhouseCoopers LLP's tests of operating
effectiveness and results of tests