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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
7.13 Accounting operations 10/1/2019-12/31/2019
associates reconcile the daily Inquired of management and was informed that the control was
lockbox receipts (checks and
wires) as reported on the “GA not operating effectively from 10/1/2019-12/31/2019.
Daily Cash Suspense Report” to 1/1/2020-9/30/2020
PBRS for DB contributions.
Discrepancies are researched For a selection of dates, inspected and reperformed the
and resolved. The reconciliation reconciliation performed on the “GA Cashbook Reconciliation &
is evidenced by sign-off on the Disbursement Checklist” and determined that they were
“GA Cashbook Reconciliation & performed completely and accurately. Also, inspected supporting
Disbursement Checklist.” An documentation and determined that all discrepancies were
independent team member researched and resolved.
performs a quality review Additionally, inspected the oversight section of the “GA
evidenced in an oversight Cashbook Reconciliation & Disbursement Checklist” and source
section of the same checklist to documentation and determined that a quality review of the
ensure the reconciliation was reconciliation was performed completely and accurately by an
complete and accurate. (DB) 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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