Agenda item

The Committee received a report from the External Auditor explaining the scope of the audit, the risks identified and the procedures that will be performed to deliver the audit for Durham County Council Pension Fund (for copy see file of Minutes).

Ms S Liddle, Mazars introduced herself to the Committee as the Engagement Manager for Pension Fund Accounts and the team leader for the County Council Accounts.  She highlighted the significant risks, including the valuation for unquoted investments.  This was not information that appeared regularly on the stock exchange and the estimation techniques included risks.

Councillor Temple was advised that the description of risk on the unquoted investments at 32% was a normal figure and was no higher than other authorities.

Mr D Beavis asked if there were any recommendation to mitigate risks as referred to in the management override risk.  He was advised that the Council do already have controls in place and Internal Audit would provide checks and assurances.  Mr Collins added that risks could occur at the year end with potential to change statements and manipulate accounts.  The Chief Internal Auditor and Corporate Fraud Manager assured Members that there were plans for the Pension Fund and County Council with anything significant being reported to this Committee.

Resolved:-

That the report be noted.