Issue - meetings

The Committee had before it a report by the External Auditor on the 2022/2023 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 advised that the financial statements gave a true and fair view of the financial position of the North East Scotland Pension Funds at 31 March 2023 and the transactions for 2022/23.

In the opinion of External Audit, the financial statements:-

·       gave a true and fair view of the financial transactions of the fund during the year ended 31 March 2023 and of the amount and disposition at that date of [its/their] assets and liabilities;

·       had been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2022/23 Code; and

·       had been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003.

The audit concluded that governance arrangements were appropriate and operated effectively during 2022/23, however the External Auditor noted that there had been long-term vacancies on the Pensions Committee and encouraged Aberdeen City Council, as the administering authority, to fill the vacancies and for Members to work together for the benefit of the fund. The report noted a need for ongoing training to support Members in building their knowledge in this complex area and provide them with essential skills for effective scrutiny.  There were further recommendations in relation to reviewing the accounting treatment of private equity management fees; ensuring checks of key control areas were evidenced; and implementing a periodic review of user access rights to ensure leavers were promptly removed and only authorised users had access to systems.

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

Members asked a number of questions of Ms MacDonald and officers.

The Committee resolved:-

(i)       to note that the External Auditor would revise the representation of training attendance in future reports to provide greater clarity; and

(ii)       to note the report.