DoL and Modtech Reach Settlement over 401(k) Annual Report Issue

January 26, 2005 ( - The Department of Labor has announced that it has reached a settlement with Modtech Holdings Inc. - a designer and manufacturer of modular buildings - over charges that it failed to file two annual reports for its 401(k) plan, and filed a deficient report in another year.

>The Perris, California-based firm has agreed to pay $75,000 in civil penalties for failing to file annual reports for the plan in 1999 and 2001.

>The fine also relates to the company’s filing of a deficient annual report in 2000. The 2000 report, according to a press release, ” did not contain a report of an independent qualified public accountant conforming to generally accepted accounting principles and auditing standards required by the Employee Retirement Income Security Act.”

>The company also agreed to ensure that the board of directors’ audit committee reviews the plan audit, as well as the independent qualified public accountant’s report for the years 2004 through 2008 before filing, according to the news¬†release.