Pension support letter A key piece of evidence in the going concern assessment, NCC provides a letter of support confirming that increases to pension contribution rates in future will be covered by increases to the YHN management fee, and that in the unlikely event that YHN becomes insolvent, NCC will step in and subsume the pension deficit. The letter gives the same assurances as last year. See Appendix 3. Letter of representation Each set of Annual Accounts is accompanied by the relevant Board’s letter of representation to the external auditors. This letter gives an undertaking to the auditors that all relevant information has been disclosed to them by Board. EY has provided a template letter. See Appendix 4 2.
Issues and concerns
2.1 Update since Q4 outturn report The following table sets out the changes to the closing reserves position since we reported our outturn to Board in May 2017. £'000 Draft Outturn Board May 2017
YHN 1,738
Abri Asfaleia Trading 859 71
Group 2,668
Improvement in bad debt provision
-
40
-
40
Tax calculation
-
73
-
73
(1,970)
-
-
(1,970)
(18)
-
-
(18)
(250)
972
71
793
FRS102 Pension cost per actuary Sundry adjustments Revised Profit in final accounts
2.2 Pension Deficit update The YHN pension deficit has increased since last year from £14.36m to £23.19m. The actuaries Aon Hewitt have independently reviewed the YHN pension fund position and provided the following numbers.