Does the Grand Academy board have a plan for the nearly $5.0 sitting in Full Spectrum Management's 401(K) Plan?
Wait, what?
According to Plan's most recent Form 5500, filed on June 14, 2017 by Mark Noss, there's $4,971,390 invested in the plan, still under management by Luke Noss.
Although it's likely that a few remaining Full Spectrum employees, along with those employed by Mark D. Noss OC LLC and Excel Institute LLC not associated with the Grand Traverse Academy, (excluding a spate of accountants ejected by the revolving door) were participants in the Plan, it appears that most participants work at the Traverse City charter school.
However, the most recent report reveals a troubling sidebar: nearly $80,000 of “delinquent contributions” that remained uncorrected during the year ending August 31, 2016.
Supplemental financial information for the Plan included this among its notes to financial statements:
NOTE 7 – THE TIMELY REMITTANCE OF CONTRIBUTIONS
The Plan has not complied with the Department of Labor’s regulations concerning the timely remittance of participant contributions to trusts containing assets for the Plan. During the year ended August 31, 2016, the plan had instances of noncompliance in depositing contributions to the participants’ accounts as soon as they could be reasonably segregated. Untimely remittance of participant contributions constitutes a prohibited transaction under ERISA section 406.
If I were a Plan participant, I'd get my worry beads out...and then call my attorney!