STATEMENT OF MANAGERS’ RESPONSIBILITIES

The Scotland Act 1998 (Transitory and Transitional Provisions) (Scottish Parliamentary Pension Scheme) Order 1999 requires the Managers of the Scottish Parliamentary Contributory Pension Fund (SPCPF) to prepare annual accounts in such a form and in such manner as the Auditor General for Scotland may direct. The financial statements for the year ended 31 March 2005 were prepared on an accruals basis, with the exception of transfer receipts which were recorded on a cash basis, to give a true and fair view of the financial transactions of the SPCPF during the year, and of the disposition at 31 March 2005 of its assets and liabilities, other than liabilities to pay benefits after the end of the Fund year.

In preparing those financial statements, the Managers were required to:

• observe the accounts direction issued by the Auditor General for Scotland, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis;
• make judgements and estimates that were reasonable and prudent;
• state whether applicable accounting standards were followed, subject to any material departures disclosed and explained in the financial statements;
• prepare the financial statements on a going concern basis, on the presumption that the SPCPF will continue in operation.

The Managers are responsible for the keeping of proper accounting records, for ensuring that proper financial procedures are followed and for ensuring that the accounting records are capable of producing statements which comply with the requirements of the 1999 Order. The Managers are also responsible for the regularity and propriety of public finances provided by the Scottish Consolidated Fund, for safeguarding the assets of the SPCPF and for taking reasonable steps for the prevention and detection of fraud and other irregularities.