(a) General. (1) A trust or other entity described in Sec.
2520.104-43(b) that files an annual report for purposes of Sec.
2520.104-43 shall include in such report the items set forth in
paragraph (b) of this section.
(2) [Reserved]
(b) Contents. (1) A Form 5500 ``Annual Return/Report of Employee
Benefit Plan'' and any statements or schedules required to be attached
to the form, completed in accordance with the instructions for the form,
including Schedule A (Insurance Information), Schedule C (Service
Provider Information), Schedule D (DFE/Participating Plan Information),
Schedule G (Financial Transaction Schedules), Schedule
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H (Financial Information), and the other financial schedules described
in Sec. 2520.103-10. See the instructions for this form.
(2) Separate financial statements (in addition to the information
required by paragraph (b)(1) of this section), if such financial
statements are prepared in order for the independent qualified public
accountant to form the opinion required by section 103(a)(3)(A) of the
Act and Sec. 2520.103-2(b)(5). These financial statements shall include
the following:
(i) A statement of all trust assets and liabilities at current value
presented in comparative form for the beginning and end of the year. The
statement of trust assets and liabilities shall include the assets and
liabilities required to be reported on the Form 5500; however, the
assets and liabilities may be aggregated into categories in a manner
other than that used on Form 5500.
(ii) Separate or combined statements of all trust income and
expenses and changes in net assets which includes the categories of
income, expense, and changes in assets required to be reported on the
Form 5500; however, the income, expense, and changes in assets may be
aggregated into categories in a manner other than that used on Form
5500.
(3) Notes to the financial statements described in paragraph (b)(1)
or (2) of this section which contain a description of the accounting
principles and practices reflected in the financial statements and, if
applicable, var i anc es from generally accepted accounting principles;
a description of the group insurance arrangement including any
significant changes in the group insurance arrangement made during the
period and the impact of such changes on benefits; a description of
material lease commitments, other commitments, and contingent
liabilities; a description of agreements and transactions with persons
known to be parties in interest; a general description of priorities
upon termination of the plan; an explanation of the differences, if any,
between the information contained in the separate financial statements
and the assets, liabilities, income, expenses and changes in net assets
as required to be reported on the Form 5500; and any other matters
necessary to fully and fairly present the financial condition of the
plan.
(4) In the case of a group insurance arrangement some or all of the
assets of which are held in a pooled separate account maintained by an
insurance carrier, or in a common or collective trust maintained by a
bank, trust company or similar institution, a copy of the annual
statement of assets and liabilities of such account or trust for the
fiscal year of the account or trust which ends with or within the plan
year for which the annual report is made as required to be furnished by
such account or trust under Sec. 2520.103-5(c). Although the statement
of assets and liabilities referred to in Sec. 2520.103-5(c) shall be
considered part of the group insurance arrangement's annual report, such
statement of assets and liabilities need not be filed with its annual
report. See Sec. Sec. 2520.103-3 and 2520.103-4 for reporting
requirements for plans some or all of the assets of which are held in a
pooled separate account maintained by an insurance company, or a common
or collective trust maintained by a bank or similar institution, and see
Sec. 2520.104-43(b)(2) for when the terms ``group insurance
arrangement'' or ``trust or other entity'' shall be, respectively, used
in place of the terms ``plan'' and ``plan administrator.''
(5) A report of an independent qualified public accountant.
(i) Technical requirements. The accountant's report--
(A) Shall be dated;
(B) Shall be signed manually;
(C) Shall indicate the city and State where issued; and
(D) Shall identify without detailed enumeration the financial
statements and schedules covered by the report.
(ii) Representations as to the audit. The accountant's report--
(A) Shall state whether the audit was made in accordance with
generally accepted auditing standards; and
(B) Shall designate any auditing procedures deemed necessary by the
accountant under the circumstances of the particular case, which have
been omitted, and the reasons for their omission. Authority for the
omission of certain procedures which independent
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accountants might ordinarily employ in the course of an audit made for
the purpose of expressing the opinions required by paragraph (b)(5)(iii)
of this section is contained in Sec. 2520.103-8.
(iii) Opinion to be expressed. The accountant's report shall state
clearly:
(A) The opinion of the accountant in respect of the financial
statements and schedules covered by the report and the accounting
principles and practices reflected therein; and
(B) The opinion of the accountant as to the consistency of the
application of the accounting principles with the application of such
priniciples in the preceding year, or as to any changes in such
principles which have a material effect on the financial statements.
(iv) Exceptions. Any matters to which the accountant takes exception
shall be clearly identified, the exception thereto specifically and
clearly stated, and, to the extent practicable, the effect of the
matters to which the accountant takes exception on the related financial
statements given. The matters to which the accountant takes exception
shall be further identified as to (A) those that are the result of DOL
regulations and (B) all others.
(c) Electronic filing. See Sec. 2520.104a-2 and the instructions
for the Form 5500 ``Annual Return/Report of Employee Benefit Plan'' for
electronic filing requirements. The trust or other entity described in
Sec. 2520.104-43(b) filing under this section must maintain an
original copy, with all required signatures, as part of its records.
[43 FR 10140, Mar. 10, 1978, as amended at 54 FR 8627, Mar. 1, 1989; 65
FR 21080, Apr. 19, 2000] 
