Decision details

Stuart Basnett, Senior Audit Manager at Grant Thornton UK presented the Lancashire County Pension Fund Audit Findings Report 2023/24.

It was highlighted that the audit had gone smoothly and the auditors expected to issue an unqualified opinion.

In response to questions, members were informed that:

·  Oracle Fusion had not caused any disruption to this year's audit and it had made transaction level data more accessible. 2 deficiencies relating to Fusion had been identified, compared with 9 identified during the previous year, so good progress had been made. The adequacy of management's responses to those weaknesses would be assessed during the next year's audit.

·  The auditors were satisfied with management's responses to their recommendations. Generally, actions and issues were discussed with management and could be resolved during the audit. In the event that this did not happen, any issues would be highlighted to the committee.

·  Regarding the number of the Pension Fund's level 3 investments, Local Pensions Partnership Investments (LPPI) managed those investments and were audited by Grant Thornton's commercial team. That team would receive financial statements and control reports about those funds and assess the fund managers' expertise. LPPI's investments were in line with the investment strategy agreed by the council's Pension Fund Committee, which also monitored the Pension Fund's performance and risks. The auditors would not comment on the appropriateness of the Fund's investments, but may query any significant differences between the strategy and the level of investments.

·  Regarding the backlog of cases to update scheme members' information and the delays experienced by Local Pensions Partnership Administration (LPPA), there had been an improvement but as the auditors' backstop deadline was brought forward in future this would need to be kept under review. Small issues such as this could cause problems if they were not resolved promptly. LPPA presented a regular report to the Pension Fund Committee on their performance in relation to the member processing targets.

Resolved: That the Lancashire County Pension Fund Audit Findings Report 2023/24 be noted.