Independent Auditor’s Report
To the Managers of the Scottish Parliamentary Contributory Pension Fund, the Scottish Parliament and the Auditor General for Scotland

I have audited the financial statements on pages 13 to 22 under the Public Finance and Accountability (Scotland) Act 2000 and the Scotland Act 1998 (Transitory and Transitional Provisions)(Scottish Parliamentary Pension Scheme) Order 1999 and the directions made thereunder. The financial statements have been prepared in accordance with the accounting policies set out on page 15

This report is made solely to the parties to whom it is addressed in accordance with the Public Finance and Accountability (Scotland) Act 2000 and the Code of Audit Practice approved by the Auditor General for Scotland and for no other purpose, as set out in paragraph 43 of the Statement of Responsibilities of Auditors and of Audited Bodies prepared by Audit Scotland, dated July 2001.

Respective responsibilities of the Managers and Auditor

As described on page 8 the Managers are responsible for the preparation of the financial statements and for ensuring the regularity of financial transactions. My responsibilities, as independent auditor, are established by the Public Finance and Accountability (Scotland) Act 2000 and the Code of Audit Practice approved by the Auditor General for Scotland, and guided by the auditing profession’s ethical guidance.

I report my opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and the Scotland Act 1998 (Transitory and Transitional Provisions)(Scottish Parliamentary Pension Scheme) Order 1999 and the directions made thereunder and whether, in all material respects, the expenditure and receipts shown in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers. I also report if, in my opinion, the Foreword is not consistent with the financial statements, if the Scottish Parliamentary Contributory Pension Fund (the “Fund”) has not kept proper accounting records, or if I have not received all the information and explanations I require for my audit.

I review whether the statement on pages 9 to 10 complies with Scottish Executive guidance on statements on the system of internal control. I report if it does not comply with the guidance or if the statement is misleading or inconsistent with other information I am aware of from my audit of the financial statements. I am not required to consider whether the statement covers all risks and controls, or form an opinion on the effectiveness of the Fund’s corporate governance procedures or its risk and control procedures.

Basis of audit opinions

I conducted my audit in accordance with the Public Finance and Accountability (Scotland) Act 2000 and the Code of Audit Practice, which requires compliance with relevant United Kingdom Auditing Standards issued by the Auditing Practices Board.

An audit includes examination, on a test basis, of evidence relevant to the amounts, disclosures and regularity of expenditure and receipts shown in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Managers in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Fund’s circumstances, consistently applied and adequately disclosed.

I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error, and that, in all material respects, the expenditure and receipts shown in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers. In forming my opinion I also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinions

In my opinion:

Financial statements

• the financial statements give a true and fair view of the financial transactions of the Fund for the year ended 31 March 2005 and of the amount and disposition at that date of its assets and liabilities, other than liabilities to pay benefits after the end of the Fund year, and have been properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and the Scotland Act 1998 (Transitory and Transitional Provisions)(Scottish Parliamentary Pension Scheme) Order 1999 and the directions made thereunder;

Regularity

• in all material respects the expenditure and receipts shown in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers; and
• the Contributions payable to the Fund during the year ended 31 March 2005 have been paid in accordance with the Fund rules and the recommendation of the Actuary.
  

Arwel Roberts,
Director, Central Government
Audit Scotland
18 George Street
Edinburgh EH2 2QU
30 November 2005