CSD-RT RFP Recordkeeping_Administration Services Response 3-

278 / 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.
Control Objective 9 - Controls provide reasonable assurance that investment income (or loss) is accurately and
timely allocated and recorded to participant accounts.
VALIC Control Activities Tests of Operating Effectiveness Results of Tests
9.4 The daily transfer agent
transactions are reconciled for
all cashmovement by fund,
shares outstanding, and NAV by
individual fund product. Evidence
of review and approval is provided
on the Trade Summary by Source
document which encompasses all
supporting schedules.
Inspected the Transfer Agent
Summary by Source reconciliations for
a sample of days to determine whether
the reconciliation was prepared and
independently approved on a daily
basis. For any discrepancies identified
in reconciliations, inspected evidence
to determine whether they were
researched and resolved.
No exceptions noted.
9.5 The completion of daily
reconciliation for annuities is
recorded on the Unit Value
Report Review Checklist and on
the Unit Value Reasonableness
Test. The completion of the daily
reconciliation for group mutual
funds is recorded on the Share
Value Pricing Review Checklist.
An independent review of the
reconciliation is required and
evidenced in the reconciliation
of the Checklist.
Inspected a sample of the Unit Value
Report Review Checklist and the
Share Value Pricing Review Checklist
to determine whether the daily
reconciliations were performed for
annuities and mutual funds.
Inspected the Unit Value Report Review
Checklist and the Share Value Pricing
Review Checklist to determine whether
they were reviewed and approved by a
separate member of the VPA team.
No exceptions noted.
No exceptions noted.
9.6 Dividend payment schedules are
monitored to confirm recording of
distributions by fund managers.
Inspected a sample of the Dividend
Verification Reports to determine
whether it was prepared to ensure the
dividend rates from UVT agree to the
dividend rates from VMS.
No exceptions noted.
9.7 The review and approval of
the Remote Wire Upload
encompasses cash movement to
all non-VALIC fund companies
and validates the purchase
or redemption of the trading
activity for the day as well as
the total shares outstanding at
each non-VALIC fund company.
This review and approval
process includes verification
that each fund was notified via
electronic communication of the
day’s activity and total shares
outstanding.
Inspected a sample of the VALIC
Remote Wire Upload to confirm
evidence of review and approval was
maintained from authorized signers.
Inspected evidence to verify each
fund was notified via electronic
communication of the day’s activity
and total shares outstanding.
No exceptions noted.
No exceptions noted.
Click VALIC .com 71
IV. VALIC control objectives and controls, and PricewaterhouseCoopers LLP's tests of operating
effectiveness and results of tests