Members gave consideration to a report of the Director of Pensions that presented Members with the audited statement of accounts of Merseyside Pension Fund for 2019/20 and responded to the Audit Findings Report from Grant Thornton.  A Letter of Representation on behalf of the Committee, which gave assurances to the Auditor on various aspects relating to the Pension Fund, was attached as an appendix to the report.

Due to COVID-19, the Fund’s Statement of Accounts for 2019/20 included an additional level of uncertainty.  The global pandemic had impacted upon financial markets and there was a further risk of uncertainty for the valuations of unquoted investments where there is a degree of estimation involved in the valuations.

Subject to outstanding work, Grant Thornton had indicated there will be an unqualified opinion, with the inclusion of an Emphasis of Matter paragraph highlighting asset valuation material uncertainties. This did not affect their opinion that the statements presented fairly the financial position of Merseyside Pension Fund as at 31 March 2020 at £8.6bn.  At the time of writing the report, the Fund had agreed to all material adjustments and a verbal update was provided.

The report informed that the Audit Opinion would be issued following final completion of the audit, consideration of the Audit Findings Report and approval of the amended Statement of Accounts at both the Pensions Committee and the Audit and Risk Management Committee. Subject to this, the accounts would form the basis of the Annual Report for the year ended 31 March 2020.

Moved by the Chair and formally seconded by Councillor Cherry Povall, it was:

Resolved – That

1 having considered the amendments to the accounts, the Audit Findings Report and the Letter of Representation, the audited Statement of Accounts for 2019/20 be approved.

2 the recommendations be referred to the Audit and Risk Management Committee.