Issue - meetings

This report presents the final Audit Findings Report for 2023-24.

Sheena Phillips (Senior Audit Manager, Grant Thornton) was then invited to introduce the final Audit Findings Report for 2023-24 to the Committee.  Members noted that the report had been produced following completion of the audit of the Council’s 2023-24 Statement of Accounts, which had been finalised and published in advance of the backstop deadline on 28 February 2025.  Members were advised that the Audit Findings Report had been issued with an unqualified audit opinion with work now commencing on preparations for the 2024-25 statement of accounts with the draft audit plans due to be presented to the Committee in June 2025.

No comments or questions were raised in relation to the report and, having once again thanked all involved for their efforts in ensuing the audit was completed in advance of the backstop deadline, the Committee RESOLVED to note the report.

This report presents the indicative draft London Borough of Brent Pension Fund External Audit Plan 2023-24.

The Chair welcomed Samantha Morgan to the meeting (representing Grant Thornton as Audit Manager following apologies submitted by Matt Dean – Key Pension Audit Partner) and invited her to introduce the External Audit Plan providing an overview on the planned scope and timing for the 2023-24 Brent Pension Fund audit process.

In presenting the report apologies the following key areas were highlighted:

·             The key matters identified in terms of both the national and local context relating to the present challenges faced by Pension Funds in terms of the impact of inflationary pressures and wider geo-political issues on global investment markets and revised investment strategy guidance.

·             The scope and timescale of the planned audit and outline provided of the significant risks identified (along with the reasons and key aspects of the proposed response) which included (in line with previous years) management of override controls, valuation of Level 3 investments and the revenue cycle including fraudulent transactions (rebutted).

·             The approach identified towards materiality, which at the planning stage of the audit had been set at £18.6m for the Pension Fund (equating to 1.5% of the gross investment assets) and £5.9m for the Fund Account (equating to 10% of the prior year gross expenditure).  The Committee were reminded that external audit would be obliged to report uncorrected omissions or misstatements other than those which had been identified as “clearly trivial” with that level set at £0.93m.  Whilst these levels were the same as 2023-24 the assessment of materiality would be kept under review throughout the audit process with the Committee advised of any adjustments, should they be required.

·             The response and progress identified against prior year audit findings and recommendations, with it noted that progress in terms of the management response against four of the seven recommendations were due to be finalised and confirmed within the Plan as part of the final year end audit.

·             The outline of the approach to be adopted in relation to the IT audit strategy.

·             The background to the audit fees which, whilst having increased from £55,771to £94,414 for the 2023-24 financial year (including an additional £7,530 for the ISA 315 work), it was noted had been determined in accordance with the scale of fees specified within the current PSAA contract.

·             The planned approach identified towards meeting the revised requirements in relation to ISA315 in relation to the Pension Fund Audit.

·             The assurance provided in relation to the independence of the auditor and audit services.

Having introduced the report the Committee was then invited to raise any comments/questions, which are summarised below:

·             Following concerns expressed in response to the increase in audit fees, members highlighted what they felt was a need to ensure that the level of external audit fees and any additional charges incurred, or further increase in fees was kept under review.  In recognising the concerns expressed, the Chair advised these had been raised but also felt it was important to recognise that the initial scale of fees had been set through  ...  view the full minutes text for item 13