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Fiduciary & Governance Engine

Audit Readiness Scoring

Score ERISA audit readiness across 40 documentation categories including SPDs, Form 5500s, fiduciary meeting minutes, vendor contracts, and prudent process evidence

The $4.7M DOL Penalty

Your plan received a DOL audit notice. You have 30 days to produce documentation. Your broker says "we're compliant." Then you discover: 3 years of fiduciary meeting minutes missing, vendor fee disclosures incomplete, SPD amendments not distributed, no prudent process documentation for the PBM selection. DOL finds violations across 8 ERISA provisions. Final penalty: $4.7M plus mandatory corrective action.

DOL Audits
1,400+
annual ERISA investigations
Avg Penalty
$2.1-8.9M
for documentation failures
Plans Audit-Ready
<12%
can produce docs in 30 days

What Fails Without This Engine

  • Can't locate documents: no centralized repository, files scattered across emails/drives
  • Gaps invisible: don't know what's missing until DOL asks for it
  • Prudent process undocumented: made good decisions, can't prove it
  • Reactive scramble: 30 days insufficient to reconstruct missing evidence

40-Point Documentation Audit

Our Audit Readiness Scoring Engine evaluates documentation completeness across 40 ERISA requirement categories (plan documents, SPDs, Form 5500s, fee disclosures, fiduciary minutes, vendor contracts, investment policy statements, claims procedures, participant notices, prudent process evidence), scores each 0-100, identifies gaps, and generates corrective action roadmaps.

Audit Readiness Scoring Algorithm
// 40-point ERISA documentation audit DOCUMENTATION_CATEGORIES = [ plan_documents, spd_amendments, form_5500_filings, fee_disclosures, fiduciary_minutes, vendor_contracts, ips_updates, claims_procedures, participant_notices, prudent_process_evidence ] FOR each category IN DOCUMENTATION_CATEGORIES: // Plan Documents (5 requirements) IF category == plan_documents: CHECK: - Current plan document signed? (20 pts) - All amendments incorporated? (20 pts) - Consistent with actual operations? (20 pts) - IRS determination letter current? (20 pts) - Restatement cycle compliant? (20 pts) // SPD & Participant Communications (6 requirements) IF category == spd_amendments: CHECK: - SPD distributed within 90 days of eligibility? (15 pts) - SMMs distributed within 210 days? (15 pts) - SAR distributed within ERISA deadline? (15 pts) - Distribution log maintained? (15 pts) - Required content elements included? (20 pts) - Plain language readable? (20 pts) // Form 5500 Compliance (4 requirements) IF category == form_5500_filings: CHECK: - Filed by deadline (no extensions)? (25 pts) - All schedules complete? (25 pts) - Actuary certification attached (if required)? (25 pts) - Audit report attached (if large plan)? (25 pts) // Fee Disclosure Section 408(b)(2) (5 requirements) IF category == fee_disclosures: CHECK: - All service providers disclosed? (20 pts) - Direct + indirect compensation listed? (20 pts) - Fiduciary status acknowledged? (20 pts) - Disclosure received within 30 days? (20 pts) - Annual updates obtained? (20 pts) // Fiduciary Governance (6 requirements) IF category == fiduciary_minutes: CHECK: - Quarterly meetings documented? (15 pts) - Attendees/votes recorded? (15 pts) - Investment review minutes maintained? (15 pts) - Vendor selection process documented? (20 pts) - Fee benchmarking evidenced? (15 pts) - Action items tracked? (20 pts) // Calculate readiness score total_score = WEIGHTED_AVERAGE(all categories) audit_readiness = CLASSIFY: IF total_score < 50: "Critical Risk" IF 50-70: "High Risk" IF 70-85: "Moderate Risk" IF 85-95: "Low Risk" IF > 95: "Audit-Ready" // Prioritize remediation FOR each gap: ASSESS: dol_violation_severity time_to_remediate cost_to_fix RANK BY: violation_severity DESC, cost_to_fix ASC OUTPUT: - Overall audit readiness score - Gap analysis by category - Remediation priority roadmap - Estimated time and cost to compliance

Engineering Architecture

Core Components

  • 40-Category Checklist: Comprehensive ERISA documentation requirements
  • Gap Identifier: Find missing/incomplete documentation before DOL does
  • Remediation Roadmap: Prioritize fixes by violation severity and cost
  • Evidence Repository: Centralized audit-ready documentation library

Scoring Metrics

Typical Score
48-62
before remediation
Target Score
95+
audit-ready standard
Avg Gaps
18-27
documentation deficiencies
Remediation Time
60-120 days
to reach 95+ score

Real-World Applications

Pre-Audit Remediation

  • DOL audit notice received, 30-day response deadline
  • Engine score: 42/100 (Critical Risk)
  • Identified 23 missing documentation items
  • Prioritized 8 catastrophic gaps for immediate fix
  • Worked 72-hour sprint: reconstructed fiduciary minutes, obtained fee disclosures, updated SPDs
  • Submitted response with 95% documentation complete, avoided $3.2M penalty

Continuous Compliance Monitoring

  • Implemented quarterly audit readiness scans
  • Engine maintains 95+ score proactively
  • Alerts when documents expiring (IPS updates, vendor contracts)
  • Auto-generates fiduciary meeting checklists
  • 2-year track record: Zero documentation gaps
  • CFO sleeps well knowing plan is DOL-audit-ready 24/7

Don't Wait for the DOL Letter

Score your audit readiness across 40 ERISA documentation categories. Identify gaps before DOL does. Build a defensible evidence library. Turn audit anxiety into compliance confidence.

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