Page 113 - NovDefComp

MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
Defined Benefit and Defined Contribution

Recordkeeping Operations System

Controls Specified by
MassMutual Business Testing Performed by KPMG LLP and Results of Tests

6.11 Accounting operations 10/1/2019-12/31/2019
associates review individual wires Inquired of management and was informed that the control was
and the total ACH batches daily
for disbursements processed on not operating effectively from 10/1/2019-12/31/2019.
CAS to TCC. Adjustments to the Exceptions Noted.
batch totals and discrepancies
are researched and resolved in a 1/1/2020-9/30/2020
timely manner. The verification is Inspected the “GA Daily Cash Suspense Disbursement Report”
evidenced by the reconciliation for a selection of dates and determined that an accounting
calculation and by sign-off on the operations associate reviewed individual wires and the total
on the “GA Daily Cash Suspense ACH batches processed on CAS and TCC as evidenced by the
Disbursement Report” sections reconciliation and sign-off on the on the “GA Cashbook
pertaining to ACH and wires. In Reconciliation & Disbursements Checklist “Additionally,
addition, sign-off is also indicated inspected the oversight section of the “GA Cashbook
on the “GA Cashbook Reconciliation & Disbursements Checklist “and source
Reconciliation & Disbursements documentation and determined that a quality review of the
Checklist.” An independent team reconciliation was performed completely and accurately by an
member performs a quality independent team member.
review evidenced in an oversight
section of the same checklist. Management Response:
(DB) As part of an internal control review, it was identified that
reconciliations were performed but not independently reviewed
for a selection of days during the period of 10/1/2019-
12/31/2019. This exception was due to the manual nature of the
control as the reconciliations were not automatically sent to the
independent reviewers which resulted in gaps where the
independent review of reconciliations were not reviewed on a
daily basis. As of 12/31/2019, the policy has been reinforced
with the associates that perform the independent review.
Management performed a lookback assessment during the gap
period (10/1/2019-12/31/2019) by examining all the daily
checklists and determined that there was a total of 59
reconciliations that were not independently reviewed. For the 59
reconciliations identified, management performed a retroactive
independent review and determined that the reconciliation was
performed completely and accurately. In addition, management
determined that no adjustments were necessary as a result of
the lookback assessment.

MassMutual Defined Benefit and Defined Control Objectives, Related Controls and Tests of
Contribution Recordkeeping Operations System Operating Effectiveness
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