correction flubbed by service provider

[Guest Beneflaw]

IRS did audit, plan corrected for failed non-discrim testing by making QNEC to NHCEs which was approved by IRS. Service Provider placed in wrong money-type (1 GAC, 2 ER-sponsored plans, QNEC was going to frozen plan but instead provider placed in active plan money type). I can't get this to "fit" into one of the qualification failures under EPCRS-anyone see something I am not? Please?

And I'll elaborate-not operational because I don't think the error arose solely from the failure to follow plan provisions (plan says what happens when fail ADP, and that is what sponsor did, made QNEC to NHCEs). Then of course, I dont see how it is a demographic, document or eligibility failure? In fact, because it was one GAC, there would be no financial difference....the only error I see is whether the correct folks received the $$$ given that I know there was overlap, but am confident the overlap was not 100%. Maybe late deposit under DOL???? But then I worry about the other plan...and folks who conceivably have taken that $$ that maybe were not entitled?