Agenda and minutes

To receive any apologies or substitutions for the meeting.

Apologies for absence were received from Cllr Nick Botterill (Observer), Andy Brown, Jodie Smart and Marlene Corbey.

To approve and sign the Part I minutes of the Investment focused Committee meeting on 20 June 2024.

The minutes of the meeting held on 20 June 2024 were presented for consideration, and it was,

Resolved:

To approve and sign the minutes as a true and correct record.

To receive any declarations of disclosable interests or dispensations granted by the Standards Committee.

There were no declarations of disclosable interests.

To receive any announcements through the Chair.

The Chairman made the following announcements:

1.    Discussions were currently taking place regarding the Committee arrangements, to align the constitution with the practice of two separate themed meetings taking place rather than one large general Committee meeting, which had allowed for greater focus on separate aspects. Comments were requested concerning this constitutional change.

2.    Discussions were currently taking place to consider awarding votes to the current non-voting observer Members and in effect making them member representatives.

3.    Regarding Investment Manager presentations, it was suggested that these only be arranged on an exceptional basis should Members and Officers feel that they be required from Fund Managers.

The Chairman encouraged Members to contact him should there be any feedback and comments.

To review progress on any actions requested by the Committee in previous meetings.

The Committee reviewed the Actions Log.

To receive the minutes of the meeting of the Local Pension Board held on 22 May 2024. To review the summary of the recommendations made by the Board.

The Committee reviewed the minutes of the Local Pension Board meeting held on 22 May 2024 and the included recommendations, and it was,

Resolved:

To note the minutes of the Local Pension Board meeting on 22 May 2024.

The Council welcomes contributions from members of the public.

Statements

If you would like to make a statement at this meeting on any item on this agenda, please register to do so at least 10 minutes prior to the meeting. Up to 3 speakers are permitted to speak for up to 3 minutes each on any agenda item. Please contact the officer named on the front of the agenda for any further clarification.

Questions

To receive any questions from members of the public or members of the Council received in accordance with the constitution.

Those wishing to ask questions are required to give notice of any such questions in writing to the officer named on the front of this agenda no later than 5pm on Thursday 4 July 2024, in order to be guaranteed of a written response. In order to receive a verbal response, questions must be submitted no later than 5pm on Monday 8 July 2024. Please contact the officer named on the front of this agenda for further advice. Questions may be asked without notice if the Chairman decides that the matter is urgent.

Details of any questions received will be circulated to Committee members prior to the meeting and made available at the meeting and on the Council’s website.

No statements or questions were submitted.

A report for the committee’s ongoing oversight of:

·       Scheme, Regulatory, Legal and Fund Update

·       Risk Register

·       Business & KPI Improvement Plan update

·       Administration KPI update – 1 March 2024 to 30 June 2024

·       Annual Low Volume Performance summary

·       Audit

a)    SWAP Audit KC Report 2024/25

b)    Payroll Migration – Phase 3

c)    CSE & PASA accreditations

·       Training plan 2024/25

Jennifer Devine, Head of Wiltshire Pension Fund, supported by other officers, presented the Headlines and Monitoring report. The report included, but was not limited to, that there had been positive developments from the Investment and Accounting team who had recruited two apprentices as well as an accounting officer who would be able to assist with training and the completion of additional tasks. Additionally, the Fund had hired an Investment Analyst who had started on 4 July and had come from an investment background. It was also noted that work had taken place on the salaries supplement, which had been taken to the Wiltshire Corporate Leadership Team and was now pending an update.

Detail was provided that the Fund was working towards an accreditation in Customer Service Excellence. An update was also provided on the low volume performance reporting and complaints activity, which covered the past year and also included Freedom of Information requests.

Information was provided regarding the Risk Register, which covered the period from January to April. It was noted that there had been improvements in relation to Compliance and Data Management, as well as Projects which had seen a number of projects closed off. The only area which had had an upturn in risk which was Fund Governance, which had been down to the procurements taking place and which had since been resolved.

Detail was provided regarding the SWAP key controls audit, where the Fund had been offered an improved assurance rating of “Reasonable”, which was an increase from the previous “Limited” rating in January 2023. This reflected the hard work of officers. Reference was also made to the Members training plan, which had been recommended by the Board after review.

The Committee discussed the report with it questioned whether the risks experienced by the Fund were being flagged sufficiently and strongly in the governance structure of the Council, it was suggested that the reputational risk of the Fund had a wider implication for the Council. It was suggested that the Chairman could attend the Audit and Governance Committee with a specific agenda item to enable greater visibility for the Fund within the wider Council, with reputational risk cited as an important matter that Councillors should understand. The Chairman agreed to give this further thought and that he would discuss the notion with Officers before further updating the Committee on his stance.

It was questioned whether the risk rating change for Data Management from amber to green was appropriate, to which Officers clarified that the report presented a snapshot in time and that the change in rating followed on from the completion of the end of the last scheme year on the old SAP system. The Officer noted that it was expected that the risk would increase again within the next report. It was also questioned regarding the Risk Register, why Fund Governance had been rated as a high risk which could be perceived as too high given the work of Officers, to which it was clarified that  ...  view the full minutes text for item 66.

The Head of Wiltshire Pension Fund will present a paper outlining the Fund’s review of its risk register design against Wiltshire Council’s newly approved corporate design.

Richard Bullen, Fund Governance Manager, presented a paper outlining the Fund’s review of its risk register design against Wiltshire Council’s newly approved corporate design. The report included, but was not limited to, the benefits of Wiltshire Council recently introduced corporate risk management system. Additionally, at the Pension Board meeting on 22 May, recommendations had been made with a request that officers undertake a review of both systems in place to propose a way forward, which was set out within the paper.

Officers had also spoken to SWAP, who had made recommendations relating to the Fund’s risk management system. It was therefore proposed that the Fund would continue to have its own risk register which would feed into the corporate risk management system due to different purposes and objectives across the Fund’s sphere of activity to the Council’s. It was outlined that the Council’s risks would be owned by different officers, particularly the Corporate Leadership Team and the s151 Officer.

The Committee discussed the report with it suggested that there was comfort in the proposal due to their being a reputational risk. In addition, it was stated that the proposal could be beneficial for the Fund as having a Wiltshire Council Officer responsible for risk areas would raise awareness outside of the Pension Fund. It was also questioned whether there would be an opportunity to feed into risk appetite, to which it was suggested that Members could contact Richard Bullen.

At the conclusion of debate, it was,

Resolved:

The Committee agreed to:

Approve the recommendations in paragraph 14 of the report:

·       To review in detail the Council’s new risk management framework (with emphasis on the new key changes as highlighted in para 6 above) and develop a plan to embed these in the Fund’s current operational risk register over the next 12 months.

·       To recommend the suggested Corporate-level risks identified in para 11 above for inclusion on the Council’s risk register.

·       To incorporate SWAP’s audit recommendations into the Fund’s risk register

·       To work with the Council’s risk management specialist to ensure that both the Council and Pension Fund are satisfied that the arrangements are compliant and effective for both parties.

The Chairman called the meeting to a break at 11:53 and resumed the meeting at 12:01pm.

An update by the Investment and Accounting Team Lead concerning the operational accounting arrangements, to include the budget outturn 2023/24 and budget monitoring for 2024/25.

Christopher Moore, Investment and Accounting Team Lead provided an update concerning the operational accounting arrangements, which included the budget outturn 2023/24 and budget monitoring for 2024/25. The update included, but was not limited to, that the final sign off for the full Pension fund accounts for 2019/20, 2020/21 and 2021/22, 2022/23 continued to be delayed. This was due to an issue with the Wiltshire Council figures, therefore meaning that the Pension Fund accounts had not received their final audit opinion for inclusion in the annual report. It was noted that Officers were dealing with Deloitte as the external auditor and had responded to every question raised. There is a delay with assurance work being provided by Deloitte to Swindon, it was stressed that this had been raised with the s151 Officer and further chasing of Deloitte would be carried out after the meeting.

A draft set of accounts for 2023/24 had been prepared despite issues caused by Oracle and that the external audit work had been commenced by Grant Thornton.

It was outlined that cashflow continued to be managed well with a high number of capital calls and large investments into the Clops fund having been made.

Regarding the budget outturn for 2023/24, the Fund underspent its operating budget of £4.4m by £345k (7%), the main cause of this being staff vacancies and absences. In year monitoring of the budget had been made impossible due to the system changeover

issues.

The Committee discussed the update with it noted that the Wiltshire Council accounts for 2019/20, 2020/21 and 2021/22, 2022/23 were going to be signed off with qualification and that this position had been agreed with the auditors. The implications of the sign off of the accounts for Swindon Borough Council was discussed and that the s.151 Officer would be further alerted of the need for sign off.

At the conclusion of debate, it was,

Resolved:

The Committee agreed to use the report to monitor progress against resolving the issues which have been identified.

Presentation of the draft Annual Accounts 2023/24 and ongoing concern assessment.

Christopher Moore, Investment and Accounting Team Lead, presented the draft Annual Accounts 2023/24 and ongoing concern assessment. The report included a draft report of the financial accounts for the year ended 31 March 2024. It was noted that the Annual Report was in the process of drafting and would be brought to the September Committee meeting, ahead of the statutory deadline of 1 December. It was also outlined that a Going Concern Report had also been added to the pack for good practice.

An overview of the Statement of Accounts was provided, including that contributions had increased year on year. It was also outlined that previously there had been provision for an underpayment issue, however this had now been resolved and therefore the provision had been removed from the accounts.

The Committee discussed the report with clarity provided that there had been no significant changes experienced with the newly appointed external auditors Grant Thornton. It was outlined that Grant Thornton had good knowledge of Brunel and that their team regularly worked with Brunel. In addition, Grant Thornton had taken to working in the office and dealing with queries in person, which had provided a positive experience. In addition, an audit plan had been produced, which could be provided to the Committee should they be interested. Further clarity was also provided on the overall membership of the Fund, with it noted that the overall membership had increased by 281 Members and that there had been an increase of 1,000 more active members. It was stated that the growth in pensioner Members could have later implications for cashflow and that this would be an area for the actuary to consider.

At the conclusion of debate, it was,

Resolved:

The Committee agreed to:

·       Note the unaudited Statement of accounts for 2023/2024.

·       Approve the appended statement of going concern.

The Pension Administration Lead will provide a verbal update to members and advise on the requirements for the need for an employer consultation process.

James Franklin, Pension Administration Lead, provided a verbal update to members and advised on the requirements for the need for an employer consultation process. The update included, but was not limited to, that originally a draft version of the strategy was going to be brought to the Committee, however due to issues such as the Oracle migration, staffing and workload this had not been possible. It was outlined that the strategy was almost complete, with key inclusions highlighted as having a KPI strategy which would move from a case basis to a transaction basis as well as reporting on every instance that work on a case had taken place to increase transparency. Reference was also made to the Charging and Escalation policy, which would need further clarity and refining, with further information to be shared with the Committee.

To review the work plan for the committee.

The Committee reviewed the Forward Work Plan with it noted that the Work Plan which had been included within the agenda pack was the one for the new scheme year and included all of the policies and strategies set to take place within this year as well as such items as the review of payroll. Members were encouraged to contact Richard Bullen, Fund Governance Manager, if they had any comments.

To determine the date of the next Committee meeting dates:

·       Investment focused meeting 19 September 2024

·       Administration focused meeting 10 October 2024

The following dates of the next meetings were confirmed:

·       Investment focused meeting 19 September 2024

·       Administration focused meeting 10 October 2024

Any other items of business which, in the opinion of the Chairman, should be considered as a matter of urgency. Urgent items of a confidential nature may be considered under Part II of this agenda.

There were no urgent items.

To consider passing the following resolution:

To agree that in accordance with Section 100A(4) of the Local Government Act 1972 to exclude the public from the meeting for the business specified in Item Numbers 17 – 23  because it is likely that if members of the public were present there would be disclosure to them of exempt information as defined in paragraphs 1 & 3 of Part I of Schedule 12A to the Act and the public interest in withholding the information outweighs the public interest in disclosing the information to the public.

It was,

Resolved:

To agree that in accordance with Section 100A(4) of the Local Government Act 1972 to exclude the public from the meeting for the business specified in Minute Numbers 19 - 23 because it is likely that if members of the public were present there would be disclosure to them of exempt information as defined in paragraphs 1 & 3 of Part I of Schedule 12A to the Act and the public interest in withholding the information outweighs the public interest in disclosing the information to the public.

To approve and sign as a true and correct record the Part II (private) minutes of the previous meeting held on 20 June 2024.

The private minutes of the meeting held on 20 June 2024 were presented for consideration, and it was,

Resolved:

To approve and sign the minutes as a true and correct record.

To consider the Part II (private) minutes, and recommendations arising, from the last meeting of the Local Pension Board held on 22 May 2024 respectively.

The private minutes of the Local Pension Board meeting held on 13 February 2024 were presented for consideration, and it was,

Resolved:

To note the minutes as a true and correct record.

The Head of Wiltshire Pension Fund will update the Committee on the Fund’s response to the Minister’s letter submitted by 19th July.

Jennifer Devine, Head of Wiltshire Pension Fund, updated the Committee on the Fund’s response to the Minister’s letter, to be submitted by 19th July.

At the conclusion of debate, it was,

Resolved:

The Committee discussed the letter and its implications and provided feedback.

The Pension Administration Lead will present a payroll migration and immediate payments update. To include outstanding matters in respect of the migration from SAP to Oracle, payslip issuance.

James Franklin, Pension Administration Lead, presented a payroll migration and immediate payments update. This included outstanding matters in respect of the migration from SAP to Oracle, payslip issuance.

The Pension Administration Lead will present an immediate payments update covering Oracle reporting & debt recovery arrangements.

James Franklin, Pension Administration Lead, presented immediate payments update covering Oracle reporting & debt recovery arrangements.

At the conclusion of debate, it was,

Resolved:

The Committee agreed to ask Officers to continue to pursue the accounts which had received overpayments and to take legal steps as necessary and appropriate.

The Fund Governance Manager will provide members with a verbal update on the procurement of strategic service providers.

Christopher Moore, Investment and Accounting Team Lead, provided members with a verbal update on the procurement of strategic service providers.

An understanding of best practices in pensions administration to be presented by the Pension Administration Lead.

The Committee agreed to defer this item due to the elapsed time of the meeting.