The Pensions Committee for Shropshire Council convened to discuss the internal audit outturn, the external audit findings, the pension fund annual accounts, corporate governance monitoring, and pensions administration monitoring. The meeting was scheduled to take place at The Council Chamber, The Guildhall, Frankwell Quay, Shrewsbury, SY3 8HQ. Due to limited space, members of the press and public were encouraged to check availability beforehand. The meeting was also scheduled to be available via livestream on the Shropshire Council YouTube channel.

Internal Audit Outturn Report

The committee was scheduled to review the Internal Audit Outturn Report for the Shropshire County Pension Fund for the year ending 31 March 2025. The report summarised the internal audit work completed during the year and provided the Chief Audit Executive's opinion on the fund's internal control environment.

The report noted that 100% of the audit plan had been delivered, with six 'good assurances' made. Eight recommendations had been made, none of which were rated as 'significant' or 'fundamental'. The report stated that Internal Audit had also provided advice on the Engage project.

Based on the work undertaken and Pension Fund management responses received; the Pension Fund's governance, risk management and internal control processes are sound and working effectively and the Chief Audit Executive can deliver a substantial year end opinion on the Fund's internal control environment for 2024/25.

The committee was asked to endorse the report and the Chief Audit Executive's opinion.

External Audit Findings

The committee was scheduled to consider the Interim Audit Findings Report from Grant Thornton, the external auditor, for the year ended 31 March 2025.

The report summarised the audit work undertaken, noting that it was substantially complete with no matters identified that would require modification of the audit opinion, subject to the completion of outstanding matters including senior engagement team review, receipt of a management representation letter, and review of the final set of financial statements.

The report noted that £4.5m of unadjusted differences had been identified in the valuation of the Fund's investments, primarily driven by timing differences. Management proposed not to amend the financial statements, considering the differences immaterial. The Audit Committee and Pension Committee were to be asked to confirm their agreement to this.

The report also provided commentary on the local and national context, including the total membership of the fund (c. 49,800), the number of active employers (166), the fund's progress on connecting to the Pensions Dashboard ecosystem, and the implementation of the McCloud remedy¹. It also noted the government's response to the 'Fit for the Future' consultation².

Pension Fund Annual Accounts

The committee was scheduled to review and approve the Pension Fund Annual Report 2024/25. The report outlined the accounts and detailed the activities of the fund during the last year. According to the synopsis of the 190925 Pension Fund Accounts Report.pdf, the Fund increased in value by £123 million to £2.626 billion in the year to the end of March 2025.

The report also included the draft unqualified opinion and consistency statement from Grant Thornton.

The committee was asked to delegate authority to officers to make any minor changes required and to approve that the Chair and Executive Director sign the letter of representation for Grant Thornton once the audit had been finalised.

Corporate Governance Monitoring

The committee was scheduled to receive the Corporate Governance Monitoring Report. The report was intended to inform members of corporate governance changes, including the government's LGPS - Fit for the Future consultation response, since the last committee and socially responsible investment issues arising in the quarter from 1 April 2025.

The report also updated the committee on a letter received from the Palestine Solidarity Campaign after the quarter end.

The report included details of actions taken by the fund's key stewardship partners and clarified the fund's position on conflict affected and high risk areas (CAHRA).

The committee was asked to note and accept the report, including appendices relating to LGPS Central, Columbia Threadneedle Investments Responsible Engagement Overlay Activity, LAPFF Engagement, and the fund's statement on investments in companies in conflict affected and high risk areas.

Pensions Administration Monitoring

The committee was scheduled to receive the Pensions Administration Monitoring Report, which provided monitoring information on the performance of and issues affecting the Pensions Administration Team.

The committee was asked to note the progress and completion of key activities from the business plan 2024-25 and the progress of the Pension Dashboard implementation.