The Draft Teesside Pension Fund Audit planning report for the Year Ended 31 March 2018 was presented to the Board for information. The report would be presented to the Teesside Pension Fund Committee for consideration on 7 March 2018.
The report summarised the External Auditors initial assessment of the key risks driving the development of an effective audit for the Teesside Pension Fund, and outlined the planned audit strategy in response to those risks.
The Auditor drew the Committees attention to the significant risks identified for the current year audit as follows:
Misstatements due to fraud or error.
Valuation of complex pooled investment vehicles.
Valuation of directly held properties.
The Auditor provided the rationale and expected audit approach for each significant risk.
It was highlighted that the risks identified could change to reflect any significant findings or subsequent issues identified during the audit.
For planning purposes, materiality for 2017/2018 had been set at £77.1m. This represented 2% of the Funds prior year net assets value and was an increase of 1% from previous years. The increase was due to there not being any issues identified with the Accounts in prior years. Materiality would be reassessed throughout the audit process and all uncorrected misstatements over this amount relating to the Fund account and net asset statement would be reported back to the Teesside Pension Fund Committee.
It was reported that there had been a change to the Audit Team and Hassan Rohimun, EYs Associate Partner responsible for the overall quality and delivery of the audit service would be signing off the audit opinion going forward, supported by Stuart Kenny as Manager on the audit, who would remain the main point of contact for the audit team.
The Audit Fee of £28,535, as prescribed by Public Sector Audit Appointments Ltd (PSAA) was drawn to the Boards attention.
Finally, it was highlighted that the Government had brought forward both the audit and the production of accounts deadlines. The Financial Statements had to be ready by the end of May, with the audit completed by the end of July rather than end of September. The main impact for the Fund was the Annual Report, which was usually signed off at the same time as the Councils Financial Statements. The deadline for the Annual Report remained as 1 December. However, with the deadline for the Financial Statements moving, it was likely that the Annual Report would be moved to August to September time, although this had not yet been determined.
AGREED that the Draft Teesside Pension Fund Audit Planning Report for the Year Ended 31 March 2018 was received and noted.