Issue - meetings
LBTH Pensions Fund
Meeting: 19/03/2020 - Pensions Committee (Item 6.8)
2019/20 Pensions Fund Audit (verbal update)
Meeting: 11/04/2019 - Audit Committee (Item 4)
4 LBTH Pensions Fund PDF 990 KB
Minutes:
Mr Angus Fish, from Deloitte’s presented the Audit Planning and the Pensions Fund report.
He said both reports set out the scope of the work and the legislation which governed their work. Mr Fish said the Audit Plan set out the significant risks they had identified, and referred Members to pages 29 and 30 of the agenda pack.
He said the Pensions fund report followed a similar format and formed part of the Statement of Accounts identifying the significant risks.
In response to questions from Members the following was noted:
· In reference to page 31, Mr Fish explained that the 2% rate used for determining materiality was the sector norm. He said for an organisation such as the Council, it had a relatively high capital resource and less varying spend. Councillor Wood disagreed and said £25M for materiality was set too high.
· In reference to page 40, Risk 3 – Management override of controls, the Chair asked Mr Fish to explain how real the risk was. Mr Fish stated this related to management overriding controls, to present a more favoured financial picture. For example the manipulation of journals posted on the accounting system with a manual journal giving a different answer. Mr Fish said that with estimates there was no one answer but a range of answers and management may exert some bias to look at individual estimates rather than a reasonable range.
· Councillor Wood asked if the London CIV (Collective Investment Vehicle) for Pensions was also part of external Audit’s remit. Mr Fish stated a separate team would look at the value of the CIV and the methodology behind every different type of investment.
· Mr Fish stated that narrative reports were the norm for Local Government and the reports provided for the Audit Plan and the Pensions Fund and the risks identified would be further examined and reported on as part of the Statement of Account which will be published at the end May. Mr Fish said further comments from the Audit Committee would be included before the publication of the accounts in July.
Members of the Committee RESOLVED to NOTE the reports from Deloitte with regard to the Audit Plan and the Pension Fund.