A Practical Guide to Auditing the Teachers’ Pension Scheme End of Year Certificate (EOYC)

For schools, academy trusts, and other employers participating in the Teachers’ Pension Scheme (TPS), the End of Year Certificate (EOYC) process is an essential annual compliance requirement.

However, with tight deadlines, evolving contribution rules, and the nuances of the TP05 agreed‑upon‑procedures (AUP) framework, the auditing stage can feel daunting. This blog breaks down what you need to know about the EOYC audit and how to prepare effectively.

What Is the EOYC and Why Does It Need Auditing?

The EOYC is a mandatory annual return that reconciles what should have been paid to the TPS with what was actually paid over the financial year. There is no materiality threshold, meaning the form must be accurate down to the nearest pound.

Employers must first submit an unaudited EOYC by the last working day of May, detailing pension contributions by tier and reconciling them to payroll totals.

After this submission, the return must be provided to an appointed reporting accountant, who will perform the specified procedures in accordance with the TP05 guidance. The reporting accountant then submits an audited EOYC to Teachers’ Pensions, typically by:

• 30 September for non–local authority establishments
• 28 November for local authorities

 Understanding EOYC: Not an Audit, but an Agreed‑Upon Procedures Engagement

Although often referred to as the “TPS audit,” the EOYC is not a traditional audit. It is an Agreed‑Upon Procedures (AUP) engagement, meaning:

• Procedures are set by Teachers’ Pensions (TP05 guidance)
• The reporting accountant follows them exactly
• No audit or assurance opinion is given
• Findings are reported factually, including exceptions

This distinction is crucial. The aim is not to give an opinion on the overall control environment but to verify that the EOYC correctly reflects TPS rules and the contributions that should have been paid. The reporting accountant is not allowed to use judgment and therefore must report every exception, even if ‘immaterial’. This means it is imperative that employers correct any known issues before the reporting accountant receives the EOYC.

Employer Responsibilities vs. Payroll Provider Responsibilities

A common misconception is that payroll providers hold responsibility for TPS compliance. In reality:

Payroll providers typically:

• Process payroll using employer‑supplied data
• Apply TPS contribution rates
• Produce payroll reports and EOYC data

But employers retain responsibility for:

• Accurately identifying pensionable pay
• Ensuring staff are placed in the correct contribution tiers
• Reviewing and approving EOYC figures
• Ensuring TPS submissions are fully complete and accurate
• Correcting payroll errors that impact the EOYC

If any mistakes are identified, such as incorrect banding, overtime treatment, or parental leave adjustments, they must be corrected before final submission. Errors left uncorrected are likely to be flagged in the audit.

Key Deadlines and What They Mean for You

Understanding the timeline is essential for a smooth audit process:

Stage	Deadline	Notes	Common Issues
Teachers’ Pensions issue contribution totals	End of April	Delivered to Employer Portal mailbox.	Missing notification emails; Portal access delays; Cash figure doesn’t match internal payroll data.
Unaudited EOYC submission	Last working day of May	Must reconcile to payroll; discrepancies require investigation.	Late information from payroll bureau; unresolved monthly mismatches; incorrect employer type selected.
Audited EOYC (non‑LA)	Last working day of September	Submitted directly by the reporting accountant.	Employer is slow to respond to audit queries; EOYC errors were discovered post-submission.
Audited EOYC (local authorities)	Last working day of November	Submitted directly by the reporting accountant.	Timing clashes with LA year-end processes; missing documentation.

Missing deadlines can lead to delays, follow‑up queries, or financial adjustments, so proactive planning and preparation are essential.

Common Problem Areas Identified During Audit

Based on recent year‑end guidance and practitioner commentary, the following issues frequently cause EOYC discrepancies:

1. Incorrect pensionable pay calculations

Problem: Misclassification of allowances, overtime, or back‑dated pay remains a common source of error.

How to prevent this:

• Carry out monthly/termly checks of any contract changes.
• Spot-check overtime and supply claims against payroll coding.

2. Incorrect member contribution tiering

Problem: Failure to update staff tiers when pay changes have occurred mid-year

How to prevent this:

• Deploy automated alerts for when salary crosses a tier.
• Add TPS tier checks to your monthly payroll review checklist.
• Conduct an annual review each April when band changes take effect.

3. Mismatches between payroll and TPS records

Problem: Monthly data discrepancies are carried forward into the EOYC.

How to prevent this:

• Reconcile each month rather than at year’s end
• Maintain a log of any queries/mismatches to ensure unresolved items are reviewed and resolved before submission
• Request monthly TPS submission reports from your payroll bureau.

4. Missing or incomplete employer type selection

Problem: Using the wrong employer type (e.g., selecting “local authority” instead of “non‑local authority”) causes the wrong EOYC form to populate.

How to prevent this:

• Add a step in your EOYC preparation checklist: “Confirm correct employer type before beginning.”

Preparing for a Smooth EOYC Audit

1. Start early and set a clear timetable

If you use a payroll bureau, ensure they deliver EOYC data well before the deadline to allow time for checking and resolving queries. Many schools receive their EOYC late, leaving little time to review.

2. Review TPS guidance annually

Teachers’ Pensions regularly updates EOYC guidance, templates, and training videos, including TP05 updates for each financial year. Staying familiar with these avoids common mistakes.

3. Check monthly payroll data

Ongoing monthly checks prevent year‑end surprises and reduce the risk of audit exceptions.

4. Reconcile contribution figures before submission

Your EOYC must match the official contribution totals issued by TPS. Any underpayment or overpayment must be investigated prior to submission.

5. Ensure access to the TPS Employer Portal

Your team needs access to download templates, view contributions, and upload forms. Delays in portal access can hold up the entire process.

 

Completing an accurate EOYC is not just a year‑end task – it depends on strong payroll controls throughout the year. Small errors can quickly become costly liabilities if left uncorrected. With early planning and the right support, the EOYC process becomes far less daunting.

If you’d like help preparing your EOYC, improving your payroll control environment, or understanding TP05 requirements, feel free to get in touch with the team at BHP.