Post on 30-Jun-2015
Form 5500 Support Services
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Form 5500 Support
Form 5500 preparation has become more complex and plan sponsors must rely on 5500 data for fiduciary oversight regarding fees and expenses. Because of this, service providers must ramp up in the following ways: Develop functionality to incorporate input from multiple sources Ensure data quality and maintenance Identify all data sources, understand the implications of the information disclosed to participants and validate
the quality and reasonableness of this information Determine client requirements and service support needs Educate clients so they are prepared to comply with changes and fulfill their responsibilities.
These new dynamics place new demands and costs on service providers who are already pressed to achieve and maintain profitability and customer loyalty.
Enterprise Iron has the expertise, resources, experience and processes to help you:
Meet your legal obligations Choose from outsourcing solutions, process improvement solutions, or supplemental staffing solutions Work with and communicate with your clients to maintain their cooperation and retain their loyalty Ensure that you have access to the most effective, automated, process in place to minimize on-going costs,
and maintain, report on, and retrieve data in a high quality systematic manner Supplement your staff with Enterprise Iron experts to assist in completing immediate deliverables and leverage
this experience during long-term improvement efforts.
High Level Needs
High Level Benefits
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Service Options
Outsourcing Services Supplementary Staff Process Improvement Engagements
Enterprise Iron offers a full range of outsourcing solutions that range from:
• Full-service total outsourcing
• Operational outsourcing
• Full array of specific processes and services that can be purchased a la carte.
You can utilize Enterprise Iron’s expert staff on-site to assist you with:
• Manual processing
• Data clean-up
• Platform installations and upgrades
• Data warehouse development or integration
Enterprise Iron’s consulting experts can help you improve internal processes and controls to better manage quality and costs:
• Business process improvement
• Technology platform improvements
• Data management enhancements and integration
Enterprise Iron brings its expertise with multiple recordkeepers in assisting and managing 5500 activities to our suite of services.
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Outsourcing ServicesEnterprise Iron offers three types of outsourcing designed to fit
your unique needs
Full Outsourcing
Operational Outsourcing
A la carte Services
• Perform all operational tasks necessary to create, distribute, file, and archive 5500 reports
• Interact with customers, auditors, and regulators to gather data, correct information, and answer questions
• Perform all operational tasks necessary to create, distribute, file, and archive 5500 reports, on a fully disclosed or private label basis
• Allow your staff to serve as the customer, auditor, and regulator interface to gather data, correct information, and answer questions
• Offer specific services to you to assist with your 5500 production, distribution, filings, or archival processes
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Full Service Outsourcing ServicesOur full-service outsourcing solutions offer you freedom from worry about
on-going regulatory reporting requirements, offer you and your clients an expertly prepared and validated set of regulatory reports and audit support, and offer electronic filing and archival of all documents for future reference.
• Beginning balances
• Last year’s certified statements and 5500 reports
• Current year transactions and account history
• Client demographic data
• Separately held assets
• Pre-conversion data
• Validate data between history and certified financial statements
• Provide correcting entries to either history or financial statements
• Produce all 5500 schedules and audit package
• File 5500 via eFAST2• Create archival records• Post reports and schedules
to client website
• Manage customer data requests
• Design and manage customer and internal training
• Design, manage, and distribute all customer outputs
• Manage customer and auditor call center support
• Manage customer website content and archival processes
Data GatheringData Validation and Reporting
Communications Support
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Operational Outsourcing ServicesOur operational outsourcing solutions offer you the opportunity to
outsource cumbersome back-office processes and platforms while maintaining customer contact points internally.
• Beginning balances
• Last year’s certified statements and 5500 reports
• Current year transactions and account history
• Client demographic data
• Separately held assets
• Pre-conversion data
• Validate data between history and certified financial statements
• Provide correcting entries to either history or financial statements
• Produce all 5500 schedules and audit package
• File 5500 via eFAST2• Create archival records• Post reports and schedules
to client website
Data GatheringData Validation and Reporting
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A la Carte Outsourcing Any of our outsourcing services can be purchased
on an a la carte basis should you need specialized processing for certain components of your regulatory compliance reporting activity.
And, any of our solutions can be private labeled and customized to your unique needs and situation.
Examples of our a la carte services:
Collection of Prior Year’s data
Collection of client data from plan sponsors
Data validation and corrections
Preparation of Reports and Schedules
Creation of Audit packages or Support for Auditors
Creation of Client Communications Materials
Creation and execution of training programs
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Our Outsourcing Process
If you choose to utilize our Enterprise Iron site, we have developed our offices in Iselin, NJ as our first processing center.
Our outsourcing services can be performed in different ways depending on your unique needs.
OUR SITE OR YOURS
OUR SYSTEMS OR YOURS
Facility• Iselin, NJ• 24 hour manned security• Access Control with card readers• CCTV & Internet TV• Video conferencing facilities• Currently occupying 200 seats across 15,000
sq. ft.• Networked for Data and Voice
Security• Restricted access to server room• Server Monitors are kept in a separate area
from the physical server• Training on privacy and security norms• Use encryption for transmission• Background checks performed on all personnel• Authorized Personnel (Employees) have
signed strict confidentiality agreements• Every sub-contractor, when engaged, are
bound by all the above guidelines
Network• High performance Network and Communication facilities with built-in redundancies• High availability of Internet connectivity is provided through multiple ISPs and
redundant last mile connectivity through Verizon cables and Radio connectivity• T1 links from Iselin office to Client office• Client’s facilities can also be connected using VPN Tunnel• Communication equipment configured with multiple power supply, CPU and
network interfaces
Routers – Cisco Routers• Firewall - High performance firewalls configured in Active / Active High Availability
Mode• Switches – High Performance layer 3 switches with built in redundancy• Cabling – Optic fiber backbone and Structured Cabling• All voice equipment is provided with multiple CPUs and power supplies
Servers• Dell Multiple CPUs, RAID-5, power supplies, multiple NICs• Oracle and SQL Server
Desktops - HPs
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Our Outsourcing Tools and TechniquesEnterprise Iron has developed a series of proprietary tools and techniques
to make our outsourcing and client support services both efficient and flexible so that we can customize solutions for you.
Data Tools
Client Support Tools
Data Exchange Methodologies
Receipt of data from your internal systems
Receipt of data from external sources including clients, trustees, and investment managers
Proprietary customized data validation routines
Flexible correcting transactions and entries
Electronic filing of 5500 reports via EFAST2
Data Storage and Retrieval
Proprietary data warehouse and data mart
Proprietary archival and retrieval tools
Complete workflow and imaging platform
Client web access to reports and audit support documents
Client Data Collection Full support of client data collection and quality review
Client Training and Support Complete web and collateral based client training
tools, along with a full service call center and client web site
Auditor Support Specialized reporting and query tools for auditors
Client Communications Full suite of client communications tools for data
gathering, status reporting, filing notifications, and archive retrieval as well as downloads to provider’s web sites and report archives
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Supplemental Staffing
Auditors and Quality Assurance Staff Data Validation and Correction Experts Annual Reporting Experts Client and Auditor Call Support Client Communications Specialists and Trainers 5500 Reporting and Schedules Experts
Enterprise Iron has a long history of offering expert staff to supplement your internal resources. We have a successful track record of support in all areas of compliance, including 5500 support. Some examples of our areas of expertise include:
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• Formulate a series of recommended end-state solutions, designed to efficiently meet annual 5500 reporting in the most cost –effective manner
• Review 5500 reporting and data needs relative to needs for other functions such as certified annual reports and annual compliance testing
• Recommend integration and leverage points that can be used to improve quality, eliminate duplicative data sources, and more efficiently integrate technology solutions across typical “ancillary” platforms
• Review and recommend platform upgrades and changes
• Design and implement platform and process improvement changes
• Review client engagement and communications programs for opportunities to mitigate risks and increase loyalty
• If necessary, design enhancements to communications programs, client training programs, and client support materials
• Review and assess training and communications programs for front line staff handling client data, client reporting, and client compliance and audit support
• Recommend improvements in line with business needs and industry best-practices
• Identify intersection and integration points with key client channels such as the plan sponsor web-site to maximize client efficiency
Process Improvement Services Overview
• Assess business risks associated with current 5500 production processes, data sourcing, and workflows and recommend short term and long term mitigants
• Document current 5500 production practices and work flows to facilitate future automation, and create an institutional body of knowledge
• Recommend and design improvements that can be implemented to increase accuracy and efficiency in meeting 5500 reporting obligations over the next 18 months
Meet Obligations Manage Client Relationships Manage Costs and Quality
Short Term Objectives Long Term Objectives
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Form 5500 Services Approach
Assess current state and initiatives in progress against agreed upon
measures of success. Recommend solution framework and define ideal
end state
Design and document required changes in process flow, client
communications, and technology platform and integration
Develop detailed business and systems requirements, and manage the build, testing, deployment, and
integration, of process and platform changes
Our approach consists of three
distinct phases that build upon each
other to achieve an end-state
designed to meet your business
objectives, both short and long term.
Assessment
Analysis and Design
Build-out and Implementation
Our 3 phase process improvement approach can be enhanced by utilizing Enterprise Iron expert resources to assist with completing any current backlogs associated with 5500 preparation and
production during implementation.
Assessment Phase
• Documented initial evaluation• Risk/benefits identification• Options/alternative solutions overview• Impact overview• Recommendations• Analysis and design phase plan
• Client communications and reporting• Compliance and legal policies, platforms, and procedures• Operations and services practices• Fees and commission calculations, reports, and disclosures• Technology and architecture• System and web interfaces• Self-directed brokerage• Special asset handling• Fund trading and accounting• Audit and control quality reviews
Areas of Review
• Week 1 – Arrange project events and schedule interviews• Week 2 - 4 - Conduct interviews, review existing
documentation and any initiatives in motion• Week 5 – 7 – Formulate deliverables and socialize concepts• Week 8 – Present final deliverables
Deliverables Typical Timeline
• 5500 preparation process• Data sourcing, controls, validation and storage• Data integrity• Financial aggregation for 5500 purposes• Integration with annual plan reporting• Data adjustment and financial re-classification• System and web interfaces• Workflow practices
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Analysis and Design Phase
• Detailed current and future state operational processes and workflows
• Business requirements document (including controls, validations and reporting specifications)
• Functional design document• Implementation project plan• Cost and resource estimates• Build vs. buy analysis• Business case justification
• Design operational workflow diagram of future state processing
• Design client education framework• Define all data sources• Create business requirements document • Define business controls and validations• Define reporting requirements• Create functional design document • Refine cost and resource estimates• Prepare project timeline for Build-Out / Implementation
phase
Operations• 5500 Preparation• Annual Reporting Preparation• Non-discrimination testing• Workflow processes
Marketing• Client communications• Client training• Internal training for client facing roles
Analysis and Design Objectives
Key Impact Areas
• 6-10 weeks depending on complexity of requirements definition
Deliverables Typical Timeline
Technology• Data sources• System interfaces• Recordkeeping system• Trust accounting system• Workflow tools
Organization• Structure• Roles and responsibilities• Standard operating procedures• Training• Headcount
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Build-out and Implementation Phase
• Technical design document *• Data Mart/Data Warehouse solution• Data interfaces• Test plans, test cases and test results• Production verification plans and results • Knowledge transfer program (SOPs, training
program, transition effort)• Validation of business justification
• Develop technical design document• Create and deploy platform and solution for 5500
generation• Design and perform testing effort • Perform data validation and production verification• Re-design of 5500 generation team processes• Re-design of workflow between teams• Re-design of quality control practices• Develop suite of Standard Operating Procedures (role based)• Design and deliver training program
• Plan sponsor’s employee communications guide• Communications checklist• Disclosure documents list• Required forms list• Audit Guide for 5500 calculations and back up
reports• Training guides for internal client-facing staff
Process and Platform Communications Programs
• Request for Proposal• Vendor evaluations with EI proprietary Comparator Tool• Product evaluations with EI proprietary Comparator
Tool• Assistance during contract negotiations• Solutions review against industry standards and best
practices• Business practice integration
Build Deliverables Buy Deliverables
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EI Tools and Techniques
Interview Questionnaires / Interview Guide
Technical Design
Document *
Work Flow Analysis Guide
Assessment
Analysis and Design
Build-out and Implementation
Business Requirements
Document
Alternatives Framework Template
Use Case Templates
Communi-cation
Program Templates
Risk Analysis Template
Integration Scheme
Sample Test Cases
Standard Business
Controls and Validations
Data Schemas and File Layout
Templates
System Architecture
Designs
Implementation Project Plans &
Budgets
Standard Data Mapping
Standard Datamart
Design
Functional Design
Document
Standard training program outline
Build vs Buy Review
Vendor Product
Evaluations
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Form 5500 Process Improvement Engagement
Team
• Project manager
• Regulatory & compliance SME
• Systems architect
• Technical lead/programmer
• Lead business analyst
• Project manager
• Regulatory & compliance SMEs
• Systems architect
• Database designer
• Business requirements analysts
• Business intelligence analyst
• Specific software SMEs
• Vendor/contract management analyst
• Project manager
• Systems architect
• Tech lead/programmers
• Testing lead and team
• DBA
• Business integration analysts
• Vendor/contract management analyst
Assessment Analysis and Design
Build-out and Implementation
** The number of consultants assigned will be based on the number of plans, type of plans, plans’ complexity, and asset mix
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Flexibility and Expertise Our three service solutions offer you the flexibility
you need with the expertise and efficiency you demand.
Sized to your requirements
Outsourcing Services Supplementary Staff Process Improvement Engagements
No organization can beat Enterprise Iron in our expertise in the retirement services industry, our familiarity with all of the common platforms and solutions utilized, and our level of commitment to providing quality compliance and regulatory support.
Equally critical to success is the way we interface with your team to plan and execute the strategy you choose. 18
Integrating with Your Team
Critical integration activities include: Establish a project methodology that explains project purpose, structure,
goals, activities and success measures. Pair EI resources with your existing teams to leverage diverse skill sets and
facilitate knowledge transfer. Identify new team incentives and measures to be implemented Identify impact of EI alternatives on other business and technology
initiatives Identify deployment opportunities for existing talent into newly defined
roles Incorporating your corporate lexicon and current job roles into EI
recommendations
Setting up your team with confidence that their talents will be valued during and after the new solutions are implemented can create a high performance work
environment that provides the best chance of success.
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Achieving Success
In addition to regulatory and compliance benefits, implementing a complete Enterprise Iron solution will enable you to:
Increase the odds of success in meeting your contractual obligations Maximize the value of any initiatives currently in motion Ensure team alignment as to solutions being proposed and implemented Execute in such a way as to maximize the opportunity to increase client
support and loyalty Manage the cost of regulatory compliance within an overall target cost
and profitability framework Build and store data in such a way as to enable future enhancements
that leverage a customized data warehouse
Rest easier that you will be able to meet your client and regulatory obligations. Set the foundation for better on-going compliance cost structures. Maximize your flexibility to handle future changes.
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Contact Enterprise Iron
For more information see our website:http://www.eifis.com
Contact Information:
485C Route 1 SouthSuite 350
Iselin, New Jersey 08830
Email: info@eifis.com
Phone: +1.888.242.4682