Issue - meetings

The Committee had before it a report by the External Auditor on the 2023/2024 Annual Audit of the North East Scotland Pension Fund.  The report  summarised the findings from the 2023/24 annual audit of the North East Scotland Pension Fund (the Fund).  The scope of the audit was set out in an Annual Audit Plan which was considered by the Pensions Committee in March

2024.  The Annual Audit Report comprised:

·       significant matters arising from the audit of the fund’s annual report and accounts

·       conclusions on the following wider scope areas that frame public audit as set out in the Code of Audit Practice 2021:

o   financial management

o   financial sustainability

o   vision, leadership, governance and use of resources to improve outcomes

·       conclusions on the administering authority's arrangements related to the pension fund for meeting its Best Value duties.

· 

The audit concluded that the fund had appropriate financial management arrangements in place which included comprehensive reporting of investment performance and appropriate medium term financial planning.  Appropriate financial internal controls were in place including satisfactory counter fraud arrangements.  The 2023 triennial valuation was concluded in line with plans. Effective medium term financial planning arrangements were in place. Fund membership levels continued to increase but the ratio of active members to pensioners was reducing resulting in changes in investment strategy.

In terms of governance and resources, External Audit had concluded that instability and vacancies in membership threatened the effective operation of the Pensions Committee, and Members’ commitment to pensions training needed to be improved to support good scrutiny.

The report found that there were effective arrangements for complying with the Pensions Regulator Public Service Code.  The pension administration function had performed well against targets.  The impact of global markets’ performance had impacted annual returns but investment performance continued to outperform longer-term benchmarks.  The administering authority had appropriate arrangements in place for securing Best Value.

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 Convener reminded Members of the importance of undertaking the required training, as highlighted in the report.

The Committee resolved:-

(i)       in respect of the vacancies on the Pensions Committee, to note that the External Auditor would share the report and its findings with Aberdeen City Group Leaders;

(ii)       to note that the Chief Officer – Finance had undertaken that officers would provide information to Members outwith the meeting on the percentage of Aberdeen City, Aberdeenshire and Moray staff not enrolled in the NESPF;

(iii)      to note that Ms Colliss and Mr Buntain were in discussion about making more of the environmental, social and governance information available to the public; and

(iv)      to otherwise note the report.