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MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
Defined Benefit and Defined Contribution

Recordkeeping Operations System

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

7.11 Accounting operations 10/1/2019-12/31/2019
associates reconcile the total Inquired of management and was informed that the control was
amount of the Debit ACH
transfers and lockbox receipts not operating effectively from 10/1/2019-12/31/2019.
(checks and wires) reported on 1/1/2020-9/30/2020
the “Daily Cash Suspense
Report” to the total amount of Inspected the corresponding “GA & MR Cashbook Reconciliation
receipts in PRS as reported on & Disbursement Checklists” and Financial Operations Analysis &
the “PRS Lockbox Receipts Metrics Team sign-offs for a selection of dates and determined
Report.” Discrepancies are that a reconciliation was performed by an accounting operations
researched and resolved in a associate between the total amount of the Debit ACH transfers
timely manner. The and lockbox receipts reported on the “Daily Cash Suspense
reconciliation is evidenced on Report” to the total amount of receipts in PRS as reported on the
reconciliation sheets and by “PRS Lockbox Receipts Report” and that discrepancies were
sign-off on the “GA & MR researched and resolutions documented.
Cashbook Reconciliation & Additionally, inspected the oversight section of the “GA & MR
Disbursement Checklists.” An Cashbook Reconciliation & Disbursement Checklist” and source
independent team member documentation and determined that a quality review of the
performs a quality review reconciliation was performed completely and accurately by an
evidenced in an oversight independent team member.
section of the same checklists to
ensure the reconciliation was Management Response:
complete and accurate. (DC) 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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