The External Auditor presented the Teesside Pension Fund Audit results report which detailed the findings of the Audit carried out as per the Audit Plan which was presented to the Teesside Pension Board on 24 April 2017.
EY had issued an unqualified opinion on the Accounts that went into Middlesbrough Council's Accounts 2016/2017 and had also issued an unqualified opinion on the consistency opinion around the Annual Report.
The Auditor highlighted several key points from the report as follows:
The level of materiality had increased from £31.3m at the planning phase to £38.5m on receipt of the actual year-end figures. The threshold for reporting audit differences had remained at £1.5 million as agreed with the Panel on 28 June 2017.
It was confirmed that the outstanding items listed under the status of the audit on page 5 of the submitted report had now been completed.
There were a number of issues with regard to disclosures, mainly due to new guidance not being followed. Any adjustment or disclosure amended had been adjusted in the final financial statements.
The areas of audit focus included three significant risks:
Valuation of complex pooled investment vehicles.
Valuation of directly held properties.
The Auditor confirmed that no issues had been identified during testing.
The Auditors opinion on the financial statements was detailed at Section 3 of the submitted report and was a clean opinion.
A summary of adjusted differences was provided at Section 4 of the submitted report and the Auditor confirmed that there were now no uncorrected misstatements. The information presented in the Accounts represented a true and fair view.
The Auditor drew the Panels attention to issues in relation to the Contribution Monitoring Spreadsheet. There had been a few minor discrepancies which, although they did not have any impact on the audit opinion, could be improved in future.
The Auditor was pleased to report that the Fund had acted on previous recommendations in relation to governance arrangements and good progress had been made.
Cyber Security and the EUs General Data Protection Regulation (GDPR), (which would come into effect from 25 May 2018), were highlighted as developing risks that Panels across the country should consider.
ORDERED that the Teesside Pension Fund Audit results report for the Year ended 31 March 2017 was received and noted.