Monthly Reporting & Internal Control
- On a monthly basis, the financial data from our clients’ custodial reports is independently reviewed and entered into the Logos Reporting System.
- A full set of monthly and year-to-date financial reports and working papers is produced by the Logos Reporting System. These reports are related to (i) pension plan net assets; and (ii) change in pension plan net assets (detailed by component of change). In essence, the Logos reports become the General Ledger for the pension plans.
- While conducting the monthly reporting process, Logos examines the appropriateness of accounting entries recorded in the custodial reports at both the investment manager level and the plan level (ie. to ensure accuracy, proper classification and appropriate timing of recognition).
- The Logos Reporting System© employs algorithms to ensure that the adopted monthly unitization methodology is applied strictly and accurately by the custodian (this applies to plans participating in a master trust).
- Logos receives supporting documentation from the plan administrator to ensure that the custodian has properly recorded pension plan cash flows (in both amount and classification). These cash flows include employer and employee contributions, lump sum benefits, annuity receipts, expenses and transfers to/from other plans/trusts. In performing this function, Logos prepares audit support files and detailed summaries for contributions, lump sum benefits, expenses and transfers to/from other plans/trusts.
- HST Reporting – The expense summaries display the HST paid by the pension plans and are used by our clients’ tax group/advisors in aid of their preparation of HST returns.
- Where pension plans (or the Master Trust(s) in which the plans participate) hold pooled fund investments, Logos conducts monthly reconciliations to ensure that the investment manager’s records are in agreement with the custodial reports (i.e. number of pooled fund units held, the market value and book value of such pooled fund unit holdings). Where there are differences between the investment manager’s records and the custodial reports, Logos investigates the discrepancy with the investment manager and the custodian to arrive at a resolution. At year-end, depending on the custodian that is retained by the pension plans, Logos records certain adjustments that are necessary to convert the custodial data to a full trade date basis.
- Asset Mix and Rate of Return reporting is produced to assist management in monitoring the plans’ investments and carry out the functions of management and the pension committee as set forth in the adopted Statement of Investment Policies and Procedures.
- Monthly investment manager and pension plan rates of return are calculated to confirm that the manager’s rate of return is in agreement with the rate of return calculated by Logos. If there are differences between a manager’s stated rate of return and the Logos calculated rate of return, it is an indication that the custodian’s data is in some way inaccurate or compromised.
- When errors are detected in the monthly custodial reports (ie. incorrect unitization, incorrect or unauthorized amounts paid out of a pension plan), Logos notifies the client and resolves the errors directly with the custodian.