Issue - meetings

The Committee had before it a report by the External Auditor on the 2018/19 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 2018/19 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 had effective arrangements in place for financial management, including comprehensive reporting of investment performance.

Net assets had increased in 2018/19: by £343 million to £4.5 billion for the Main Fund and by £5 million to £105 million for the Transport Fund.  Performance of investments remained above the benchmark.  Systems of internal control operated appropriately and effectively in 2018/19.

The Fund had appropriate and effective financial planning arrangements in place and although Main Fund contributions from members currently exceeded benefits paid out, 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 report noted however that not all Members of the Committee or Board had attended the expected number of training sessions, and noted that it was important that Members maintained an appropriate level of knowledge to fulfil their role effectively.   

There were two recommendations from External Audit, namely (a) that the Fund should ensure that adequate arrangements were in place for the transfer of membership data, assets and liabilities from Strathclyde Pension Fund Transport Fund; and (b) that Pensions Committee and Pension Board members should ensure that they keep their pensions knowledge up to date and take advantage of the training and development opportunities offered.

The Committee heard in detail from Ms Woolman in respect of the report.

The Committee resolved:-

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

(ii)        to note the audit report.

The Board resolved:-

to note the decision of the Committee.