COMPILATION OF THE FINANCIAL STATEMENTS (PENSIONS)
The purpose of this schedule to our engagement letter is to set out the basis on which we are to compile the accounts for the pension scheme.
1. OUR RESPONSIBILITIES
1.1We shall compile the annual financial statements based on the accounting records maintained by you and the information and explanations given to us by you. We shall compile draft annual financial statements for your approval. We shall plan our work on the basis that no report is required by statute or regulation for the year, unless you inform us in writing to the contrary.
1.2Our work as the compilers of the annual financial statements will not be an audit of the financial statements in accordance with the International Standards on Auditing (UK and Ireland). Consequently our work cannot be relied upon to confirm that the accounting records or the financial statements are free from material misstatement, whether caused by fraud, other irregularities or error.
1.3We shall report, with any variations that we consider may be necessary, that in accordance with your instructions, we have compiled without carrying out an audit, the financial statements from the accounting records of the scheme and from the information and explanations supplied to us.
1.4 We have a professional duty to compile financial statements which conform to generally accepted accounting principles. Where we identify that the financial statements do not conform to accepted accounting principles, or if the accounting policies adopted are not immediately apparent, this will be made clear in our report, if it is not clear in the financial statements.
We have a professional responsibility not to allow our name to be associated with financial statements which we believe may be misleading. In extreme cases where this matter cannot be resolved, we will withdraw from the engagement and notify you in writing.
1.5As part of our normal procedures we may request you to provide written confirmation of any information or explanations given to us orally during the course of our work.
1.6 In common with all accountancy and legal practices, we are required by the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007 to:
• have due diligence procedures for the identification of all clients;
• maintain appropriate records of evidence to support customer due diligence; and
• report in accordance with the relevant legislation and regulations.
2. REPORTING TO THE PENSIONS REGULATOR
2.1We have a statutory duty under section 70 of the Pensions Act 2004 to report immediately to The Pensions Regulator (TPR) if we have reasonable cause to believe that there is or has been some failure to comply with any duty relevant to the administration of the scheme imposed by any enactment or rule of law on the trustees or managers, the employer, any professional adviser or any prescribed person acting in connection with the scheme and that the failure to comply is likely to be of material significance to TPR. We may have to make this report without your knowledge and consent and we cannot undertake to you to fetter this discretion in any manner.
2.2 Section 70 does not require us to undertake work for the sole purpose of identifying breaches likely to be of material significance to TPR. In considering the need to make a report, we may decide to consult the scheme actuary. You hereby authorise us to communicate directly with the scheme actuary.
3. YOUR RESPONSIBILITIES
3.1You have undertaken to make available to us, as and when required, all the accounting records and related financial information necessary for the compilation of the financial statements. You will make full disclosure to us of all relevant information. The financial statements need to be approved by you before we are able to issue our report.
3.2You are responsible for ensuring that, to the best of your knowledge and belief, financial information, whether used by the scheme or for the financial statements, is reliable. You are also responsible for ensuring that the activities of the scheme are conducted honestly and that its assets are safeguarded, and for establishing arrangements designed to deter fraudulent or other dishonest conduct and to detect any that occurs.
3.3 You are responsible for ensuring that the scheme complies with the laws and regulations applicable to its activities, and for establishing arrangements designed to prevent any non compliance with laws and regulations and to detect any that occur.
Updated December 2015