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Fiduciary Awareness: Are you prepared for the DOL?by Dana Howell, Manager & ERISA Advisor, Assurance Services Practice Group, dana.howell@bcgcompany.com

How to lower your risk of plan auditsThe Department of Labor (DOL) plan audits are on the rise. One reason attributed to the

increase in compliance audits is believed to be the significant opportunities for error. The DOL

is concerned with how plan sponsors are managing these plans.

During fiscal year 2013, the DOL had responsibility for 684,000 retirement plans and 2.4 million

health plans. Per the DOL, 3,677 of those plans were investigated and resulted in:

• 2,677 plans requiring monetary corrective action

• $1.69 billion recovered, which includes enforcement,

voluntary fiduciary corrections, and informal complaint

resolutions

As fiduciaries of their benefit plan, sponsors are responsible for

ensuring that plans are in accordance with the plan document

and the Employee Retirement Income Security Act (ERISA).

There are some simple processes that can be completed annually

to assist sponsors with their plans.

Keep An Up-to-Date Plan Document:

Do you have a signed copy of the current, complete plan document, including all amendments?

Many times plan sponsors do not have the most recent, signed copy of their plan document.

This is the first item that is requested in a DOL audit, and should be the one thing that all plan

sponsors are familiar with.

Know Your Plan’s Definition of Compensation:

What does your plan document state should be used as the definition of compensation for

employee elective deferrals?

Employer match? Profit-sharing contribution?

Caring People. Shaping Futures.™

Issue 62 © 2014 by Brockman, Coats, Gedelian & Co.

Summer 2014

Fiduciary Awareness: Lowering Audit Risk Plan audits are on the rise. Are your plans ‘up to snuff.? Pages 1&5

Making a Difference

Awards & Recognition. Page 2

BCG Legacy Advisors Webinar Series Page 2

BCG Systems: Technology Experts for 25 Years Page 3

Think, Act and Invest Like Warren Buffett Page 6

2 Authors & Expositors

2 Certifications

2 Service Anniversaries

4 Employee Spotlight: Pam Wright

4 Check Our Additions

6 Best of the Best

6 Chili Cook-off

3 out of 4 audited plans contain an ERISA violation*According to the Department of Labor

I N S I G H T S

This newsletter is published by Brockman, Coats, Gedelian, & Co. bi-annually to provide you with an informative summary of current business, financial and tax planning news and opportunities. Consult us for details and assistance in applying this general information to your specific situation.

ERISA Compliance - Plan Document Prep ... Continued on Page 5

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Dave Brockman, managing partner and co-founder, as well as the Greater Akron Chamber’s vice chair of Small Business Council, has been bestowed the distinction of ‘Small Business Advocate of the Year.’

Dave was honored with this award because he is an active community leader that recognizes small business through his employment, community involvement and professional affiliation.

Additionally, Dave was elected to serve as Treasurer of Embracing Futures, formerly known as the Beacon Journal Charity Fund.

Laura Culp was elected Vice Chairman of the Akron Canton Chapter of the Ohio Contractors Association. In addition, she chaired the 34th Annual PrimeGlobal Tax Conference in Atlantis.

Tiffany Herbert has been recognized by the Greater Akron Chamber as one of its “30 for the Future.” Tiffany has been chosen to represent this select group as a result of her professional and community accomplishments, team-building, leadership, and creativity in overcoming obstacles.

Gail Warfield volunteered with Elyria’s Blue Star Mom’s Group to pack care boxes for troops overseas and those coming home.

A U T H O R S & E X P O S I T O R S

Doug Mathey presented on ‘The Rules of Prudent Investing’ to the Investor’s Interest Group at Westlake Public Library.

Ray Dunkle spoke at: the Bernard I. Rosen Domestic Relations Institute on ‘Hot Topics in Business Valuation’; the Macedonia Rotary on ‘The Current State of Fraud’; and the Greater Akron Chamber/Akron Rubber Ducks event on ‘Minor League Controls and Big League Damages - The State of Fraud in Corporate America.’

AWA R D S & R E C O G N I T I O N

Top Questions Business Owners Have When Thinking About Retirement

BCG Legacy Advisors is presenting a

webinar series that will address the

top questions business owners have

when thinking about retirement.

Join our executive partners as

they share their expertise in

dealing with each level of the

exit planning process, as well as

securing a financially sound road to

retirement.

Ray Lampner, a Certified Exit

Planner with over 20 years of M&A,

financial advisory solutions and exit

planning experience, and Doug

Mathey, a registered investment

advisor with more than 20 years of

tax strategy and financial service

background, will present on the

essential questions and solutions

for business owners planning to

retire.

*All webinars are from 2:00 p.m. - 3:00 p.m. on the dates listed

Tuesday, July 22nd:

Will I Have Enough to Retire?

Tuesday, August 5th:

Making Wise Decisions with Your Money

Tuesday, August 19th:

Advanced Planning: Tax and Estate

For more information, or to Register, visit our events page: www.bcgcompany.com/events

BCG Legacy Advisors Webinar Series

SERVICE ANNIVERSARIES

Dana Howell 15 years

Linda Kelly 10 years

Kathy Adkins 5 years

Gail Warfield 5 years

Ray Lampner (Partner, Entrepreneurial Services) has earned a Certified

Exit Planning Advisor (CEPA) designation from the Exit Planning Institute.

Lampner, an executive member of BCG Legacy Advisors, received this

accrediation after acquiring appropriate business transition experience,

completing an intensive training program and passing an examination.

certifications

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BCG Systems: Celebrating 25 Years of PartnershipA Story of Growth and SuccessThe year was 1989. It was the first release of Microsoft Office, the premiere of the movie “Batman” and the year Nintendo began selling the

Game Boy. You may remember buying a stamp for 25 cents or buying a gallon of gas for 97 cents.

It had been three years since establishing BCG & Company when founders Dave Brockman, Jim Coats and Tom Gedelian decided they wanted to be connected with the wave of the future and get involved with computers. While they had the opportunity to work with several IT consultants, there was one they felt stood head and shoulders above the rest. Enter Mark Goodson.

The founders of BCG recognized a technical guru with the same values and business philosophies that started their organization. Mark told them, “We don’t do technology for technology’s sake. We get an understanding of the core drivers of that business, then select the right technologies to build a solution that fits their goals and provides a competitive advantage in their market space.”

The Merger

“The idea of merging my own company, Systems That Work, into BCG made tremendous sense,” says Goodson. “I have always believed there can be great synergy between a CPA firm and a technology firm.”

Being part of a CPA firm adds considerable stability and credibility to our technology practice. In turn, we provide a much needed service to our CPA clients and a huge differentiator in the marketplace as a CPA firm.

Just as every company needs a good CPA, they also need a trusted advisor from a technology perspective.

“I don’t see that changing, as technology becomes more integral to our lives every day and the success of our companies.,” adds Mark.

Forward Momentum

The first big win after joining BCG was The Ruhlin Company. We provided a Business Process Review and helped them select a new ERP system, as well as totally re-architecting their infrastructure. We helped them move from a mini-computer with the old ‘green screens’ to a Novell network with PC’s connected to an IBM RS6000 running their new ERP system. Due to the success of this install, the ERP company requested our help with a similar installation in Atlanta. And what’s more, Ruhlin is still a client with us today, 20+ years later.

The Technology Metamorphosis

After starting out as an IBM development shop and then adding Novell networking in 1989, it was apparent that we should create separate groups to continue to drive growth and top level service that could focus on their respective areas.

As technology evolved, seeing the direction of Microsoft and moving to 100% Microsoft, to our current offering of Office 365, BCG Network Assurance, Cloud Hosting, Microsoft networking, Dynamics GP, Dynamics CRM and NetSuite, we also evolved and created three core BCG Systems practices: Business Solutions, Networking and Development.

Growing Nationwide

Today, BCG Systems is represented not only here in Akron, but also in Atlanta, GA and Nashville, TN.

In 2001, we established some nice client relationships in Nashville and business grew from there. Then in 2004, the Atlanta market peaked our interest following some client successes. We received a positive reaction from our key software partners (Microsoft and Sage), and opened the Atlanta branch in January 2005. We continue to grow the Atlanta practice and view this market as strategic to our growth.

What The Future Holds

Mark Goodson sums up the future, “In the next five years, we plan on doubling our business while working to continuously improve everything we do. We consistently get high marks from our clients for the service we provide, but that doesn’t stop us from always trying to raise the bar even higher.”

He adds, “We are seeing significant growth in our BCG Network Assurance program and definitely expect that to continue, as well as growth in our cloud solutions – Office 365, Azure, and NetSuite along with Dynamics GP. And, we hope to acquire one or two firms that offer Managed Services in the Atlanta market and possibly a firm that supports NetSuite.”

“We could never have made it to where we are today without the tremendous strategic IT consultants and leaders: Ken Klika, Partner and Director of Network Solutions, and Don Snyder, Partner and Director of Consulting and Development Services. Each leading their high-caliber teams with the same passion for client success, superior service and technology that BCG Systems was founded upon,” says Goodson.

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Mark Goodson, Founder and Partner, BCG Systems

Audra Beers has joined BCG Systems as an ERP Business Consultant focused on Dynamics GP. She brings over 10 years of experience with Dynamics GP to her role. Audra earned a Bachelor of Arts degree in Accounting from Kent State University. She lives in Medina.

Corey Borovicka was hired as an IT Support Specialist in the Network Solutions Group with BCG Systems. His background includes study in Computer Science & Forensics from Medina County Career Center, and Microsoft and Network+ certifications. He resides in Brunswick.

Jessica Boyle has joined Tax Services as an Associate. She brings two years of previous experience to her role. Jessica earned a Bachelor of Science degree in Business Administration and a Master of Accounting degree from St. Louis University, St. Louis, Missouri. She lives in Louisville.

Ben Brown joined the Assurance Services department as Associate. He earned a Bachelor’s degree from Kent State University and brings one year of experience to his role. He resides in Hinckley.

David Finley was hired as Assistant Network Administrator. He brings over four years of experience to his role and holds a Bachelor of Arts degree in History from Kent State University. David served in Operation Iraqi Freedom with the United States Army Reserve. He lives in Canton.

Jerry Gobeille joined BCG Systems as Senior Network Engineer. He has over 15 years of experience. Jerry holds a Bachelor of Science degree in Biology and Chemistry from Cleveland State University. He resides in Strongsville.

Blake Harrison was hired as Tax Manager in Tax Services. He brings nearly eight years of tax compliance and planning experience to his role and holds a Bachelor of Science degree in Accounting and Information Systems from Virginia Tech. Blake has relocated from New York to Ohio and is currently pursuing a Master in Taxation degree. He lives in Broadview Heights.

Darin Holdsworth joined BCG Systems as IT Support Specialist. He resides in North Canton.

Rebecca Javins has been hired as an ERP Business Consultant focused on Dynamics GP for BCG Systems. She earned an MBA degree from the University of Dallas in Information Technology. She works remotely from

her home in Memphis, Tennessee.

Mike Kowalski joined BCG Systems as Business Development Manager. He brings 13 years of experience to his role, and holds a Bachelor of Business Administration degree from Ohio University. Mike resides in Rocky River.

Ian MacEwen was hired as Senior Associate in Assurance Services. Ian is a Certified Public Accountant (CPA). He earned Bachelor of Science and Master of Science degrees in Accounting from the University of Akron. He brings over two years of accounting experience to his role. Ian lives in Seven Hills.

Ryan Milota joined the Entrepreneurial Services team as an Associate. A recent graduate, he earned a Bachelor of Business Administration degree from Kent State University. Ryan lives in Broadview Heights.

Craig Schellenberg is a Senior Network Engineer with BCG Systems. He has over 14 years of experience and has earned over 13 certifications. Craig earned a Bachelor of Science degree in Computer Science from Indiana University Southeast, New Albany, Indiana. He resides in Stow.

Jennifer Schumacher has joined the Tax Services department as Senior Associate. She brings 13 years experience to her role, and holds a Bachelor of Science degree in Accountancy from the University of Akron. Jennifer lives in West Akron.

Greg Sinko was hired as Supervisor in the Forensic and Valuation Services department. He has five years of experience and holds a BSBA Accounting degree from Ohio Northern University, as well as an MBA from Baldwin Wallace University. Greg resides in Strongsville.

Meaganne Smith was an intern with BCG Systems for five months and has since been hired as a full-time IT Associate in the Network Solutions group. She is pursuing an Associate degree in Computer Information Systems at the University of Akron, Cisco Networking Track. She lives in Akron.

We also appreciate the additional help from our seasonal preparers Paula DiVencezno and Larry McKay, as well as interns Mitchell Duale, Nathan Grob, Lily McMillan, Alexander Shannon, Kacie Wears and Christine Wilkins.

4

Pam Wright Named PartnerBCG & Company is pleased to announce the addition of a new partner, Pam Wright, CPA, to the firm’s executive team.

Pam started her career with BCG&Co. in 1998 as a senior associate in the Assurance Services department. She has since developed a specialization in servicing the audit, tax and financial needs for Not-for-Profit clients.

“Pam sets the bar high for her impressive ability to maintain a productive and successful balance between her demanding work and home schedules. Pam has demonstrated superior client service, quality and integrity in her work, and leadership in our nonprofit practice area. She has proven herself instrumental in relationship-building and upholding the firm’s overall objectives and culture. We are pleased to welcome her as a partner at BCG,” says Dave Brockman, Managing Partner.

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ERISA Compliance - Plan Document PrepContinued from Page 1...

Many times plan documents use different definitions as the basis for

each of these calculations.

If you know what these definitions are, then you can address what

controls you have in place to ensure your payroll processor and third

party administrators are using the same definition of compensation.

Maintain Timeliness of Employee Contributions:

DOL Regulations states that employee contributions must be

deposited into the plan as soon as can be reasonably segregated, but

no later than 15 business days following the month it was withheld.

Plan sponsors should forget the ’15 business day’ rule and put

processes in place to ensure consistency, where contributions are

being submitted on the same day after each employee payroll.

The best defense is an offense - plan sponsors should prepare everyday

as if the DOL will be calling.

Although the above is a small list of items plan sponsors should be

aware of, the key is making sure there is proper oversight by fiduciaries

(not third party administrators or advisors) and the plan is operating in

accordance with the plan document and ERISA.

If the DOL comes knocking, we want you to be prepared!

Good recordkeeping of everything you do can provide a helpful backup

in responding to questions that may arise about the scope of your

services.

Keep records of your client service work, including:

• Investment policy adoption and updating.

• Oversight and monitoring of designated investment alternatives.

• Regulatory updates and developments.

• Fiduciary training.

• Investment or other fiduciary committee meeting support.

• Analysis and reports on plan fees and expenses.

• Actions taken to mitigate or reduce plan expenses.

• Watch list recommendations.

• Actions taken to replace or retain funds.

• Participant enrollment meetings.

• Investment education or retirement readiness sessions.

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Issue 62 © 2014 by Brockman, Coats, Gedelian & Co.

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22nd Annual Chili Cook-off & SoupfestCelebrating the 22nd annual BCG&Co. chili and soup fundraiser, our employees once again fired up the kettles for some friendly competition – all for the benefit of the Akron-Canton Regional Foodbank’s Harvest for Hunger campaign.

This year’s winner for Best Tastin’ Chili was Jennifer Schumacher with her ‘White Chicken Chili’ delicacy. Jenny Hertzig went home with the blue ribbon for the Best Name award with her ‘Gold Medal in Russian to the Bathroom’ recipe. While the Best Non-Chili award went to Tom Hastings, for his submission of the ‘Hoginator.’

For the price of admission, a contribution to the Harvest for Hunger, employees once again tested, ingested and attested to their favorites via secret ballot.

A big thanks to all our cooks – Anne Triola, Amber Hyster, Brian Coffman, Jill Mesich, Dave Brockman, BJ Davis, Rudi Goeldi, Jenni Davies, Colleen Lozano, Candi Wensinger, Janet Palcko and Penny Schirra – whose creations were remembered by some well into the next day.

The Latest Reasons to Think, Act, Invest Like Warren Buffett

Anticipation was building for a spring release date. The “trailer” put out by Fortune magazine teased us. It were as if a blockbuster movie were about to be released...media buzz was on hyperdrive.

Warren Buffett released his annual shareholder letter and once again accomplished a feat most business owners only dream of: people read it.

Buffettisms Deliver Impactful Punch

This one does not disappoint. Jam-packed as it is with a litany of essential ‘Buffetisms,’ it reminds us and inspires us yet again on why much of Buffett’s advice about investing -- and life -- is worthy advice indeed.

Free Sound Advice to Consider

In 2012, our Director of Research at BAM Alliance, Larry Swedroe, published a helpful guide entitled, “Playing A Winner’s Game: Think, Act and Invest Like Warren Buffett.” Swedroe shares some of Buffett’s most successful strategies, and how every investor can use them to build his or her own sound investment habits.

BCG Wealth Advisors is delighted to offer you a complimentary copy of this book. Contact Doug Mathey at Douglas.Mathey@BCGWealthAdvisors.com to receive yours today. Doug can also answer questions regarding the investment strategy best suited for you.

BCG Named Among ‘Best Accounting Firms to Work For’ by Accounting TodayBCG is proud to have been named once again among the Best Accounting Firms to Work For in the nation by Accounting Today.

BCG Systems Named to MSPmentor 501 Global Edition MSPmentor 501 Global Edition is a distinguished list and report identifying the world’s top 501 managed service providers (MSPs).

“Games are won by players who focus on the playing field - not by those whose eyes are glued to the scoreboard,” - Warren Buffett, 2014 Shareholder Letter