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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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Record Keeping - Check and EFT Payments
Control Objective 7
- Controls provide reasonable assurance that the processing of check and EFT payments are
properly authorized and processed accurately.
VALIC Control Activities
Tests of Operating Effectiveness
Results of Tests
7.1 The check writer printers are
located in a secured room in
Accounting. Only appropriate
individuals have access to this
room via the security card reader
system.
Observed whether the check writer
printer was secured in a room with
card reader restricted access and
whether only cards programmed with
access to the room allowed entry.
Inspected the card reader access
report from Security to determine
whether physical access to the check
writer room was appropriate.
No exceptions noted.
No exceptions noted.
7.2 Before non-automated on-
demand policy check requests
are entered, Accounting submits
requests to Compliance for OFAC
review and reviews the approved
requests and verifies approval
limits against the On-Demand
Disbursement Authorizations
table to confirm requests
are within the appropriate
authorization levels.
Test performed by the FCU team:
Inspected a sample of non-automated
on-demand check requests to
determine whether the appropriate
approvals were obtained based on the
business policy.
No exceptions noted.
7.3 Accounting compares the
payee, address, amount,
document number and issuing
company on the non-automated
on-demand check to the TAPS
check request to ensure data
was entered correctly.
Test performed by the FCU team:
Inspected a sample of non-automated
on-demand checks to determine
whether evidence of an Accounting’s
review of the manual check to the
TAPS request exists to ensure data
was entered correctly.
No exceptions noted.
IV. VALIC control objectives and controls, and PricewaterhouseCoopers LLP's tests of operating
effectiveness and results of tests