Form 5500 Schedule A

[Guest Annette Leerhoff]

My question is as follows:

The instructions to Schedule A says that the insurance company is required to provide you will all the information necessary to complete the Schedule A. I reviewed the instructions and there is nothing about reporting premiums or benefits paid on the accrual or cash basis. If we audit the plan sponsor of a welfare plan, should we report the accrued claims to be paid at year end but not reported on the schedule A by the insurance company. I assume that the insurance company reports amounts on the cash basis.

Please advise.

Thank you,

Annette Leerhoff

[Guest Form5500]

The Schedule A, like the Schedule D, are reported on a cash basis. Information reported on Line 7a of the Schedule A should match to Line c(14) on the Schedule H. So, even though your audit is done on an accrual basis this one line is reported on a cash basis.

Nicola