Agenda item

This report provides an update on the Pension Fund Annual Report and Accounts for the year ended 31 March 2024.

(Agenda republished to include the attached report on 3 October 2024)

Fatima Elgamri (Finance Graduate Trainee) introduced the report, presenting the Pension Fund Annual Report and Accounts for the year ending 31 March 2024.  At the time of the meeting, the Sub Committee was advised that the audit fieldwork was substantially complete, with the auditors now working on completing their closing procedures and final reviews in order to enable audit sign off by the Audit and Standards Advisory Committee.

Members were advised that the accounts had been prepared to meet the requirements of the Code of Practice on Local Authority Accounting in the United Kingdom 2023/24 (the Code) governing the preparation of the 2023-24 financial statements for Local Government Pension Scheme funds with the aim of providing a true and fair view of the financial transactions of the Pension Fund during the year ended 31 March 2024 and the amount and disposition of the Fund’s assets and liabilities as at 31 March 2024.   The main items of note were identified as follows:

•       During 2023/24, the value of the Pension Fund’s investments had increased to £1,259m (2022-23 £1,116m). This had largely been driven by an increase in value of global equities following a shift in rate expectations, coupled with lower-than-expected inflation figures.

•       Total contributions received from employers and employees were £69m for the year, an increase on the previous year’s £68m.

•       Total benefits paid to scheme beneficiaries, in the form of pensions or other benefits, were £52m, an increase on the previous year’s £48m.

•       As in 2022/23, the pension fund remained in a positive cash-flow position as contributions exceeded outgoings to members.

In terms of the draft Pension Fund Annual Report, members were advised this had been sent to Grant Thornton (External Auditor) for review and would be published on completion of the audit process.  The Annual Report included the Fund’s Investment Strategy Statement; Pensions Administration Strategy and Funding Strategy Statement.

The Chair thanked Fatima Elgamri for the update provided and then invited members to raise any questions or comments, with queries and responses summarised below:

·             In response to further details being sought on progress on completion of the audit process, members were advised that whilst not possible to achieve the initial September deadline efforts were in progress to complete the necessary process during October with no significant or material issues in terms of the Pension Fund Statement of Accounts having been identified to date.  It would not, however, be possible to sign off the Pension Fund Accounts until work on the Council’s Statement of Accounts had also been completed, which had been subject to delay due to a number of outstanding requests for information that had needed to be addressed.  Amanda Healy (Deputy Director of Investment and Infrastructure) assured members that regular meetings with the auditors continue to be held with David Ewart (in his capacity as Chair of the Audit and Standards Advisory Committee) also confirming the efforts being made to complete the audit process as soon as was possible.

·             Focussing on the role of Fund Managers in contributing towards any delay in the provision of information relating to the audit process, officers advised that whilst there had been a need to seek further details from some manager’s these had not caused any critical delay with this also being reflected in future year’s planning.

In thanking the Finance team for their work regarding preparation of the Fund’s accounts the Committee RESOLVED to:

(1)    Note the draft accounts included as part of the annual report.

(2)    Note the draft Brent Pension Fund Annual Report 2023-24 which would be published as set out in paragraph 4.4 of the report.