Barnet Pension Fund is facing a potential audit qualification due to ongoing data quality concerns, according to discussions at the recent Local Pension Board meeting.
The issue stems from incomplete and inaccurate member data, a problem that West Yorkshire Pension Fund (WYPF) and Barnet Pensions Team have been working to correct since 2021. According to the Data Improvement Plan and Historical Leavers report, WYPF is focusing on previously identified areas with the most issues, including missing addresses and postcodes. Despite progress, significant data items still need review, raising concerns with external auditors Grant Thornton.
Grant Thornton's indicative audit plan for 2024/25 highlights several key issues, including a potential disclaimer of opinion on the 2023/24 annual accounts due to a lack of assurance on opening balances as of April 1, 2023. This could lead to an 'except for' qualification on comparative figures in the 2024/25 accounts. The auditors also plan to scrutinise the repayment of overpaid contributions between the Council and the Pension Fund, and conduct additional procedures on opening balance migration following the Council's move to an Oracle-based accounting system.
The Board reviewed the Pension Fund Risk Registers, which detail risks associated with scheme management, including current assessments and planned actions. Data quality is a recurring theme in the registers.
As of June 10th, approximately 6,250 data items required review and update, according to the Administration Performance Report. A significant portion of these errors relate to member addresses, with approximately 920 members in the Barnet Fund having incorrect or missing address information. To address this, WYPF is undertaking a bulk address tracing exercise across all the funds they administer. The Data Improvement Plan and Historical Leavers report does not specify the expected timeline for completion of this exercise.
The Data Improvement Plan and Historical Leavers report indicated that the Pensions Regulator (TPR) data scores, which measure data quantity, show common data (member identification information) at an acceptable level (over 95%). However, conditional data (benefit calculation information) requires further improvement.
The Board discussed the upcoming implementation of the Pensions Dashboard, an online tool for accessing pension information. They noted that Funds must connect to the Pensions Dashboard ecosystem
by September 30, 2025, making accurate data even more critical. The Data Improvement Plan and Historical Leavers report notes that WYPF is continuing final programming and testing in preparation for the Pensions Dashboard launch, expected next year.
The Local Pension Board approved the Local Pension Board Annual Report, reviewed its Terms of Reference, and noted the Forward Work Plan for 2025/26. The Board also received an Update on the Local Government Pension Scheme (England and Wales), noting the government's final report on the Fit for the Future
consultation, which focuses on asset pooling, local investment, and governance.
The Annual Accounts and External Audit Update highlighted Grant Thornton's indicative audit plan for 2024/25, which includes additional procedures on opening balance migration due to the Council's recent move to a new accounting system.
The Local Pension Board acknowledged the importance of ongoing data improvement efforts to ensure accurate financial reporting and compliance with regulatory requirements.