Issue - meetings

The Committee had before it a report by the External Auditor on the 2017/18 Annual Audit of the North East Scotland Pension Fund.  The report noted that auditors were required to report on specific matters arising from the audit of the financial statements to those charged with governance of a body, prior to the financial statements being approved and certified.  The report presented the draft annual report on the 2017/18 audit.

The key messages from the audit were that in the opinion of External Audit, the North East Scotland Pension Fund’s financial statements gave a true and fair view and were properly prepared.  The management commentary, annual governance statement and governance compliance statement were all consistent with the financial statements and had been properly prepared.  The Fund had effective arrangements in place for financial management, including the comprehensive reporting of investment performance.  The report advised that the fund’s investment return performance in comparison to other Scottish Local Government Pension Scheme funds had improved in 2017/18 compared to the previous year, with a move from second lowest to second highest performer.

The 2017 triennial funding valuation had assessed the Main Fund as 107% funded, which was an increase of 13% from the 2014 valuation.  Council employer contribution rates were maintained for 2018-2021 at 2017/18 levels.  Other employer contributions rates ranged from 11% to 33.8%.

The 2017 triennial funding valuation assessed the Transport Fund as 94% funded, an increase of 1% from the 2014 valuation.  Employer contributions were to remain at the current level for 2018-2021, but with an additional £1.5 million payment per annum to reduce the deficit.  Pension contributions for the Main Fund continued to exceed benefits payable, however the report noted that this was likely to change in the coming years. 

The audit had found that effective governance arrangements were in place to support scrutiny of decisions made by the Pensions Committee and decisions were transparent, with committee papers and detailed minutes available on the Aberdeen City Council website.  The performance of the Fund was subject to regular review and scrutiny by the Committee.

The Fund did not have any recommendations for improvement.

The Committee heard in detail from Ms Woolman in respect of the report following which Members asked a number of questions.  In respect of a query relating to the figures for investment performance and the potential difference with the figure in a later report, it was clarified that the five year figure was an annualised figure, and officers advised that they could make this clearer in future reports.

The Committee resolved:-

(i)         to thank Ms Woolman and her team for the clear and informative presentation and report; and

(ii)        to note the audit report.

The Board resolved:-

to note the decision of the Committee.