The purpose of this report is to present Members with the audited statement of accounts of Merseyside Pension Fund for 2019/20 and to respond to the Audit Findings Report from Grant Thornton.

Due to COVID-19, the Fund’s Statement of Accounts for 2019/20 include an additional level of uncertainty. The global pandemic has impacted upon financial markets and there is 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 has indicated there will be an unqualified opinion, with the inclusion of an Emphasis of Matter paragraph highlighting asset valuation material uncertainties. This does not affect their opinion that the statements present fairly the financial position of Merseyside Pension Fund as at 31 March 2020 at £8.6bn. At the time of writing this report, the Fund has agreed to all material adjustments; a verbal update at the meeting will be provided.

The Audit Opinion will 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 will form the basis of the Annual Report for the year ended 31 March 2020.

A Letter of Representation on behalf of the Committee has been prepared, which gives assurances to the Auditor on various aspects relating to the Pension Fund.