Reporting of Late Deposit of Deferrals (Posted April 15, 2005) Technical Tip 52: The following question and answer are from the DOL/EBSA website: What disclosure is required if the independent qualified public accountant ("IQPA") determines that information on Line 4a of Schedule H (large plans) or Schedule I (small plans) of the Form 5500 concerning the timing of transmittal of elective contributions is not presented in accordance with DOL’s regulatory requirements? DOL Response: As with any other information required to be presented on supplemental schedules, when the CPA auditor concludes that the scheduled information required by Line 4a does not contain all the required information or contains information that is inaccurate or is inconsistent with the plan’s financial statements, the auditor must consider, depending on the nature of the problem and the type of information, either modifying his or her report by adding a paragraph to disclose the omission of the information, or expressing a qualified or an adverse opinion on the supplemental schedules, as appropriate. Comment by the RLR&C ERISA attorneys: The significance of this response is that the DOL has imposed a higher standard on CPA/ auditors with respect to late deposits regardless of whether the late deposit is the result of exceeding the 15 business day outer limit or the general standard that the deposit must be made as soon as it is possible to segregate the money from the employer's general assets. It should also be noted that EBSA is continuing to aggressively investigate plans whose Forms 5500 reveal late deposits. View all Tips © 2008 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.