The Pensions Audit Sub-Committee of the City of Edinburgh Council met on 24 June 2024 to discuss the Lothian Pension Fund's annual report, internal financial controls, and business continuity. Key decisions included the approval of the unaudited annual report and the phased implementation of business continuity recommendations.

Lothian Pension Fund Annual Report

The committee reviewed the Lothian Pension Fund Annual Report, which remains unaudited. The report outlines the fund's financial performance over the past year. Councillors discussed the fund's investment strategy and its impact on returns. The report was approved, with members noting the importance of transparency and accountability in managing public funds.

Internal Financial Controls

The committee examined the Statement on the System of Internal Financial Control for the Lothian Pension Fund. This document assesses the effectiveness of the fund's internal controls. Councillors highlighted the need for robust controls to prevent fraud and ensure the integrity of financial reporting. The statement was accepted, with a recommendation for ongoing monitoring.

Business Continuity

A significant portion of the meeting was dedicated to the Business Continuity Final Internal Audit Report. The report includes a phased implementation plan to enhance the fund's resilience to disruptions. Councillors debated the merits of the phased approach, with some expressing concerns about potential delays. Ultimately, the phased implementation was approved, with a commitment to regular updates on progress.

Quarterly Governance Update

The committee received a Quarterly Governance Update, which provided an overview of governance activities and compliance with regulatory requirements. Councillors discussed the importance of maintaining high governance standards and ensuring that all regulatory obligations are met. The update was noted, with no significant issues raised.

Internal Audit Annual Report

The Internal Audit Annual Report for 2023-2024 was presented, summarising the findings of various audits conducted throughout the year. The report provided an overall positive opinion on the fund's internal controls, with some areas identified for improvement. Councillors acknowledged the importance of internal audits in maintaining the fund's integrity and endorsed the report's recommendations.