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External Audit Plan for East Sussex Pension Fund 2017/18

Meeting: 16/07/2018 - Pension Committee (Item 21)

21 Independent Auditor's (KPMG) Report to those charged with governance and Annual Report 2017/18 pdf icon PDF 129 KB

Additional documents:

Minutes:

21.1     The Committee considered a report produced by the Independent Auditor (KPMG) to those charged with governance on the Pension Fund Annual Report 2017/18, including the anticipated unqualified audit opinion on the 2017/18 Pension Fund Annual Report.

21.2     The Committee RESOLVED to:

1) Note the Independent Auditor’s (KPMG) report to those charged with governance on Pension Fund Annual Report 2017/18;

(2) Approve the Pension Fund Annual Report 2017/18 for publication;

3) request a report by Northern Trust on Level 2 and Level 3 Investments at a future meeting.

 


Meeting: 22/03/2018 - Audit, Best Value and Community Services Scrutiny Committee (Item 47)

47 External Audit Plan for East Sussex Pension Fund 2017/18 pdf icon PDF 126 KB

Report by the Chief Finance Officer.

Additional documents:

Minutes:

47.1     The Committee considered a report by the Chief Finance Officer, presented by Joanne Lees, Director at KPMG.  The Committee noted that this would be the last external audit by KPMG before the newly appointed external auditors, Grant Thornton, take over.  Ms Lees confirmed KPMG’s independence from the Authority.

 

47.2     Ms Lees drew the Committee’s attention to the level of materiality, set at £33m, and the three areas of audit focus:

·         Valuation of hard to price investments

·         Management override of control (required by professional standards) 

·         Fraudulent revenue recognition (required by professional standards)

 

47.3     Ms Lees rebutted the risk of fraudulent revenue recognition, owing to the limited incentives and opportunities to manipulate the way income is recognised. 

 

47.4     The Committee explored the issue of the valuation of hard to price investments.  It was explained that these were principally long term Private Equity investments that are valued annually for the purposes of closing the accounts and producing the Pension Fund Annual Report.  The Head of Pensions confirmed that he would provide the Committee with details of the valuation process.  In response to further questions he set out that Private Equity represented an exposure of 4% of the Fund, and that the process was continually monitored.  

 

47.5     The Committee RESOLVED to note the Plan to be submitted to the Pension Committee in May 2018.