What's new - OnPoint EBP March 2024

The March 2024 release of OnPoint EBP enables firms to audit more types of employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA). With this release, firms may now audit multiple-employer plans (MEPs) and employee stock ownership plans (ESOPs). The scope of OnPoint EBP now includes the following types of employee benefit plans:

  • 401(k) or profit sharing

  • 403(b)

  • Defined benefit

  • Health and welfare

  • Multiple-employer [including pooled employer plans (PEPs) and multiple employer welfare arrangements (MEWAs)]

  • ESOP (including KSOPs, leveraged, and unleveraged plans)

OnPoint EBP continues to facilitate engagements when management elects to have an audit performed pursuant to ERISA Section 103(a)(3)(C), as well as engagements not performed pursuant to ERISA Section 103(a)(3)(C), for all in-scope plan types.

Following are some of the significant highlights of this release of OnPoint EBP:

Multiple-employer plans (MEPs)

  • The auditor indicates the plan is a MEP on document 1000, Engagement – acceptance/continuance. MEPs utilize the same trial balance taxonomy elements applicable to the underlying plan type [401(k) or profit sharing, 403(b), defined benefit, and health and welfare plans]. Accordingly, there is not a new trial balance import template for MEPs, nor is there a unique financial statement document. MEPs use the financial statement document for the underlying plan type; however, certain financial statement note disclosures dynamically adjust for MEPs.

  • Document 1205, Plan profile, has been expanded to include documentation of provisions specific to MEPs.

  • A new document has been added, 1210 – Multiple-employer plan provisions matrix, for use in documenting the differences in plan provisions and benefits that may exist among the participating employers.

  • If plan provisions vary by participating employers, the auditor will be asked about potential increased risk and the need for additional audit procedures at the respective risk assessment documents.

  • Certain procedures within the audit programs provide sampling considerations unique to MEPs.

Employee stock ownership plans (ESOPs)

  • Document 1000, Engagement – acceptance/continuance, has been updated to allow the auditor to identify the plan as an ESOP and to indicate whether the ESOP is combined with a 401(k) plan (KSOP). 1205, Plan profile, provides for documentation of whether the ESOP is leveraged or non-leveraged.

  • Document 1205, Plan profile, has been expanded to include documentation of provisions specific to ESOPs.

  • There is a new, unique trial balance import template for ESOPs (1320.E, Trial balance import template ESOP) and a new financial statements document (1300.E, Financial statements and auditor’s report – ESOP).

  • For leveraged ESOPs, the financial statement presentation reflects allocated and unallocated amounts as separate columns (columnar method) on both the statements of net assets available for benefits and the statement of changes in net assets available for benefits. For non-leveraged ESOPs, the financial statements present only a single column.

  • The distinctive reporting structure for leveraged ESOPs requires the assignment of allocated and unallocated accounts. Detailed instructions are provided on the “After Import – Leveraged” worksheet in 1320.E, Trial balance import template ESOP.

  • Though not required by ERISA, the statement of changes in net assets available for benefits can be presented in comparative form.

  • Certain risk assessment documents have been revised and new risk assessment documents have been added, including:

    • 2206, Risk assessment – investments in employer stock (new)

    • 2210, Risk assessment – participant data (revised)

    • 2215, Risk assessment – benefit payments (revised)

    • 2250, Risk assessment – notes payable (new)

  • Certain audit programs have been revised and new audit programs have been added, including:

    • 3000, Audit program – plan contributions (revised)

    • 3101, Audit program – investments employer stock (new)

    • 3200, Audit program – participant data (revised)

    • 3300, Audit program – benefit payments (revised)

    • 3850, Audit program – notes payable (new)

  • New testing workbooks, templates, and schedules have been added, including:

    • 2329, Sampling template – ESOP or KSOP

    • 3110.E, Investment testing workbook – ESOP

    • 3111.E, Investment testing workbook [non-Section 103(a)(3)(C)] with other investments – ESOP

    • 3220.E, Participant data and pass-through dividend testing template – ESOP

    • 3221 – Pass through dividends confirmation template

    • 3310.E – Benefit payment testing template – ESOP

    • 3855 – Notes payable confirmation template

Preliminary and final analytics (2105)

  • Enhancements have been made to improve usability.

  • Revised to incorporate ESOPs.

Presentation and disclosure requirements (1335)

  • New section added for ESOPs.

  • Expanded to address additional presentation and disclosure recommendations.