Issue - meetings

1.40 p.m.

Representatives from Ernst & Young will attend to present the following:

·         Oxfordshire County Council Draft Audit Results Report - Year ended 31 March 2020

·         Oxfordshire Pension Fund 2019/20 Draft Audit Results Report

The reports were noted.

Adrian Balmer presented the report ‘Oxfordshire County Council Draft Audit Report – Year ended 31 March 2020 and noted the following:

• Following guidance issued in March, risk assessments have been increased on valuations, our internal valuers have been instructed to review assets and advise of their opinion on material uncertainty.  This work is ongoing.
• All of our valuers are RICS valuers or fellows of RICS, the valuations are worked through by the valuers and internal actuaries.
• There are increased challenges faced through virtual working, how evidence is reviewed and verified to ensure it is complete and accurate.

Adrian Balmer responded to member’s questions as follows:

• Risk assessments have been amended to be mindful of COVID, no issues have been identified in the 2019/20 accounts but will be rather looking forward to the 2020/21 accounts.
• As the contract with Carillion is terminated, the legal position is not being reviewed, however depending on when the accounts are officially signed off, there could be post balance sheet adjustments to take account of.

Adrian Balmer also presented the report ‘Oxfordshire Pension Fund 2020/21 Draft Audit Results Report and advised the key thing to note is around the working valuations.  Fluctuations have been identified as a significant risk since COVID and some of these have increased.  There are elements of property that have to be reflected and risk assessments updated. 

Adrian Balmer responded to members questions as follows:

• OCC does not have a significant investment portfolio, and at £23 million there is no significant exposure, this is a positive and helps to give a more stable perspective than other authorities that have borrowed more extensively.
• The audit fees were agreed in 2016, however there is an acknowledgement that the pension fund with £2billion worth of assets is not commensurate with the amount of work undertaken.  As the expectation from our regulators has increased since the base fees were agreed in 2016, the pressure on those fees has increased.

Members thanked Adrian Balmer for the reports and his presentation.