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Report to: |
Audit Committee |
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Date of meeting: |
28 March 2025 |
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By: |
Chief Finance Officer |
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Title: |
External Audit Plan for the East Sussex Pension Fund 2024/25 |
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Purpose: |
To inform the Audit Committee of the content of the East Sussex Pension Fund external audit plan for 2024/25 |
RECOMMENDATIONS:
The Audit Committee is recommended to:
1) Note the content of the external audit plan for the East Sussex Pension Fund for 2024/25; and
2) Note the Informing the Risk Assessment Questionnaire.
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1.1 Grant Thornton (GT), as the East Sussex Pension Fund’s (ESPF) external auditors, have provided the draft External Audit Plan for 2024/25 (Appendix 1), which provides an overview of the planned scope and timing of the statutory audit of the ESPF Annual Report and accounts and identifies any significant risks.
1.2 In producing the External Audit Plan for 2024/25, GT have undertaken interim audit work, with management providing responses to a number of questions which are presented to those charged with governance for review and information within the Informing the Risk Assessment Questionnaire (Appendix 2).
2.1 The External Audit Plan for 2024/25 identifies a number of risks that require audit consideration as they could potentially cause a material error in the financial statements. These are:
· ISA (UK) 240: Management override of controls: there is a non-rebuttable presumed risk that the risk of management override of controls is present in all entities;
· Valuations of level 3 investments are based on unobservable inputs and hence a risk of material misstatement due to error;
· Valuations of level 2 investments, whilst not carrying the same level of inherent risk associated with Level 3 investments, there is an element of judgement involved in their valuation;
· IAS 26 - Actuarial Present Value of Promised Retirement Benefits disclosure is an accounting estimate and is sensitive to changes in key assumptions;
· Cash and cash equivalents – the receipt and payment of cash represents a significant class of transactions;
· Benefits Payable – representing a significant percentage of the Fund’s expenditure;
· Contributions Receivable – from employers and employees, this represents a significant percentage of the Fund’s revenue;
· Financial instrument disclosure and associated risks have the potential to impact on the understanding of users of the accounts.
2.2 The plan sets out the audit procedures that will be undertaken to address the risks set out in 2.1.
2.3 The proposed audit fees for 2024/25 are £101,515 (2023/24 - £97,867). The fees are set through contract management and procurement by Public Sector Audit Appointments (PSAA).
3.1 The Audit Committee is recommended to note the content of the external audit plan for the ESPF, together with the Informing the Risk Assessment Questionnaire.
3.2 This report will go to the ESPF Pension Board and Pension Committee in the coming months.
IAN GUTSELL
Chief Finance Officer
Contact Officer: Ian Gutsell, Chief Finance Officer
Tel. No: 01273 481399
Email: ian.gutsell@eastsussex.gov.uk
Local Member(s): All
Background Documents
None