Agenda item

Report of the Chief Finance & S151 Officer presenting the Pension Fund Annual Report and audited Accounts for 2016/17.

The Committee considered the report on the audited Pension Fund Annual Report and Accounts for 2016/17 and the Annual Governance Report of the external auditors, BDO, which covered their annual audit of the Pension Fund accounts. The report was introduced by Leigh Lloyd-Thomas, BDO, who set out the findings of the audit. He confirmed that there were no errors in the draft accounts and that no amendments were needed for the bottom line of the fund accounts or the asset statement, the only changes made were to the presentation. Mr Lloyd-Thomas gave commendation to Thomas Skeen, Head of Pensions, for his work on the fund this year as it had improved considerably since last year.

BDO ran through the key audit and accounting matters giving an overview of the work carried out, the findings and conclusions. The Committee noted in the area of contributions receivable that there were two admitted bodies with outstanding contributions payable and one in particular had paid their contributions late on numerous occasions throughout the year.

Mr Lloyd-Thomas also highlighted a finding within the remuneration of key management personnel disclosure audit area. On this point the Committee noted that the management fee for the costs incurred by the Council in providing staff and general running costs support to the pension fund did not include any allowances for time spent by senior management. BDO recommended that an amount of time be estimated and included in the recharge allocation management fee to the fund.

In the area of membership disclosure it was reported that there were 32 active members recorded that had left the Council but BDO confirmed that these members had not been accruing pension benefits since leaving the Council. A periodic clean-up exercise of the system was recommended. Janet Richards, Pensions Manager, confirmed that these members were mainly from outside payroll providers not Council employees.

In relation to the pensions page that is maintained on the Haringey website the Committee requested that the number of hits it receives is published in all future reports.

Action: Pensions Manager

The Committee also requested that recharges for addition costs be applied to the two admitted bodies with outstanding payments and the outside employers connected to the 32 active members who had left but not been disclosed to the Council. The Head of Pensions confirmed that discussions had begun with these parties but as charging was a recently introduced procedure then initial warning letters would be sent to warn of penalties if the issue continued. It was agreed that this would be included in the administration strategy.

Action: Head of Pensions

RESOLVED

·         That the Committee and Board note the findings of the external auditor in their report attached in Appendix 1.

·         That the Committee note and approve the Pension Fund Annual Report and Fund Accounts for 2016/17.

·         That the Committee and Board give the Chair of the Committee and Board and Chief Finance Officer (S151 Officer) authority to sign the letter of representation to the Auditor as set out in paragraph 6.3 of this report.