Author Archives:
Erin Carter

For many years there has been concern about the accuracy, consistency, and quality of ERISA plan audits. Originally introduced as part of the Employee Retirement Income Security Act (ERSA), the audits are designed to ensure plans comply with established governance, financial reporting, and other standards. The depth of the problem came into focus when the DOL published, Assessing the Quality of Employee Benefit Plan Audits in 2015. In the report, it was found that 40% of audits contained major deficiencies. The report was full of such unfavorable findings which called into question the effectiveness of both the audit standards and firms providing the service.

As the pandemic continues to abate, the way many Atlanta businesses operate has significantly changed over the last 18 months. The unexpected restrictions preventing customers, employees, and vendors from directly interacting created unexpected operational challenges. New social distancing requirements forced organizations to make significant changes to achieve compliance. This meant some businesses (restaurants) had to move to a take-out-only format, and others had to limit production runs, while several companies transitioned to a virtual office environment. The ability to move to a virtual format allowed employees the opportunity to stay productive while working from home. This new operating format met regulations while serving customers in a whole new way.

Saving for retirement is an important step that every Atlanta individual and family needs should prioritize, at the right time, to ensure there will be enough for the golden years. Unfortunately, when seismic events like an unexpected global pandemic, even the best-laid plans can be cast aside. The unfortunate result of the forced business closures and stay-at-home orders meant that unemployment increased at robust rates. Many were left in unexpected situations where retirement savings was likely not top of mind. Despite these conditions, it appears optimism about meeting retirement savings goals was not impacted.

Organizations that spent $750,000 or more in federal funds with fiscal year-ends beginning after June 30, 2021, may need to abide by updated requirements from the Office of Management and Budget (OMB). The agency’s recently issued guidelines, the 2021 Compliance Supplement, supersede previously issued guidelines from November 2020. Given the increase in the number of organizations that have accepted funding from federal programs, an update was needed to ensure the proper reporting, testing, and compliance is occurring.

The COVID-19 pandemic created significant financial challenges for many businesses, individuals, and families. In January 2020, the unemployment rate in Atlanta was 3.2% but by June it had more than doubled to 7.6%.  These numbers reflect how the fear of virus transmission and new government orders conspired to create adverse circumstances. While companies were busy adapting operations to find new ways to serve customers, individuals and families were re-assessing financial priorities to weather the storm.

Many Atlanta businesses understand the complex challenges associated with managing a 401(k), 403(b), or other employee benefit plan. Maintaining compliance with the requirements set forth in the Employee Retirement Income Security Act (ERISA), ongoing DOL guidance, and IRS regulations is complicated often requiring the assistance of one, or more, outside consultants. The purpose of these regulations is to provide comprehensive protection of participant interests in several areas from plan communications and amendments to investments and loan procedures. Although Atlanta plan sponsors never intend to make a mistake, it is more than likely that at some point one will happen.

Managing a benefit plan can be a challenging task. There are multiple rules and regulations which must be followed including those mandated by both the IRS and the Department of Labor (DOL). Many of these originated with the Employee Retirement Income Security Act of 1974 (ERISA) which was designed to provide a broad framework for how plans should function including rules on plan administration, participant access, annual audits, and more.

The COVID-19 pandemic presented several and significant challenges for many Atlanta nonprofit organizations. The stay-at-home orders combined with social distancing rules not only impacted daily operations, the ability to deliver programs and services, but also had a devastating impact on revenue generation. In-person fundraisers, annual events, award programs, and more, which generate needed funds were scrapped requiring many to heavily rely on online efforts.

Since the start of the COVID-19 pandemic, there have been over 6,311 reported cases of fraud perpetrated against Atlanta individuals, families, and businesses. The primary communication method used to identify, manipulate, and extract financial information was email. The tactic, commonly referred to as a phishing attack, occurs when scammers (bad actors) attempt to solicit personal financial or other information by posing as a trustworthy organization or individual.

The COVID-19 pandemic created significant and serious challenges for Atlanta individuals, families, businesses, and nonprofit organizations. The forced business closures, stay-at-home orders, and social distancing guidelines meant an almost complete disruption to daily activities. While necessary to prevent widespread infection, it also caused businesses to fail, unemployment to skyrocket, and left many without work. Despite these unique conditions, it appears the pandemic had little impact on retirement savings.