Blog

Many people go to the doctor for a physical checkup every year or so to make sure they are in good health. If you are the owner of a small business, how do you gauge the “health” of your company?

One way is to keep an eye on several metrics that can help you monitor your company’s health in key areas. These metrics commonly take the form of financial ratios that can be compared against other businesses that are similar to yours, or against prior performance periods for your company- a process known as benchmarking.

We all know the feeling… it’s time to clean the office and you’re sorting through stacks of documents, filing them away, shredding some, creating more piles… and the questions keep arising. Can I toss this? Is this something important to keep? I’ve been holding on to this for 3 years, surely it’s OK to let it go now?

In 2015, the Department of Labor (DOL) issued a report titled “Assessing the Quality of Employee Benefit Audits, summarizing their inspection of 2011 employee benefit plans.  Their findings showed that a shocking 39% of employee benefit plan audits (nearly 4 out of 10) contain major deficiencies with respect to one or more relevant GAAS requirements.  These deficiencies are such that they would lead to a rejection of Form 5500 putting $653 billion and 22.5 million plan participants and beneficiaries at risk.  That is not very reassuring when it comes to choosing a firm to trust with this very important task!

Companies that sponsor qualified retirement plans have a fiduciary duty to prudently select and monitor the investment options offered in their plan. Failure to meet this fiduciary standard can expose plan sponsors to costly litigation in which they could face personal liability.

In recent years, regulators have intensified their focus on and scrutiny over retirement plan controls. Given this, it’s critical to ensure that the proper procedures and controls are in place for your qualified plan.

by Dave Miniken

After four years on the board of directors, and chairing a number of committees, I was recently elected board chair of the Washington Society of CPAs (WSCPA). This is the second time in Sweeney Conrad’s 35-year history that a member of the firm has served in this role; one of our founders, Mike Sweeney, chaired the WSCPA in 1989.