Page 116 - 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

6.13 Accounting operations 10/1/2019-12/31/2019
associates reconcile on a daily Inquired of management and was informed that the control was
basis that trade activity from
Fundlinx equals cash activity as not operating effectively from 10/1/2019-12/31/2019.
fed from the administrative Exception Noted.
recordkeeping systems (CAS and
PRS). The reconciliation is 1/1/2020-9/30/2020
documented on the “GA & MR Inspected the “GA & MR Daily Cash Suspense Report” for a
Daily Cash Suspense Reports” selection of dates and determined that an accounting operations
and discrepancies are associate verified that trade activity from Fundlinx equaled cash
researched and resolved. The activity as fed from the administrative recordkeeping systems
verification is evidenced on the (CAS and PRS). Also determined that the reconciliation was
daily “GA & MR Cashbook documented on the “GA & MR Daily Cash Suspense Reports”
Reconciliation & Disbursements and that a verification review was evidenced on the daily “GA &
Checklists.” An independent team MR Cashbook Reconciliation & Disbursement Checklists.”
member performs a quality
review evidenced in an oversight Additionally, KPMG inspected the oversight section of the “GA &
section of the same checklists to MR Cashbook Reconciliation & Disbursements Checklists” and
ensure the reconciliation was source documentation and determined that a quality review of
complete and accurate. (DB) the reconciliation was performed completely and accurately by
an independent team member
Management Response:
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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