Agenda item

Report of the Director of Finance.

Members received a report of the Director of Finance seeking their agreement to the Pension Fund Annual Report and Financial Statements for the year ending 31 March 2016.

An officer introduced the report and referred to the audit of the Pension Fund Accounts by KPMG, the Council’s External Auditor, who had made relatively few comments to the Fund except in connection with the operation of the separate bank account.  The officer said that, due to the issues with the commercial software package (SAP) used by the Council, it had not been possible to implement the recommendation from KPMG in its entirety.  He pointed out that the Pension Board had recommended that every possible effort be made to correct this anomaly.  However, the Council was of the view that to make the changes necessary for the Pension Fund bank account to directly process all transactions would entail costs and uncertain risks which could not be justified currently.

Members queried the consequences of non-compliance and enquired about the cost associated with the change in software.  The Director of Finance stated that the previous auditor had not raised this concern but assured Members that checks and balances were in place to ensure integrity of the system.  Financial accounting records were also reconciled to help identify errors, irregularities and needed adjustments.  They were not being dismissive of this issue and that KPMG had accepted the Council’s response.

In response to additional questions, an officer stated that:

·                     employee/employer contributions would be paid into the Pension Fund bank account as early in the month as possible;

·                     the commentary in the “Fund Performance” section of the Annual report would be expanded to 2016-17;

·                     in the table listing employers, Jubilee Academy should be described as a “scheduled body” rather than a “transferee admission body”;

·                     the Communications Policy Statement was currently being updated for submission to the next meeting of the Committee and would include an updated schedule of all employers.

RESOLVED:  That the Annual Report and Financial Statements for the year ending 31 March 2016 be agreed.