Agenda item

A report for the committee’s ongoing oversight of:

·        Scheme, Regulatory, Legal and Fund Update

·        Key Performance Indicators (KPIs) – 1 July 2021 to 30 September 2021

a)     Employer Data Compliance

·        Fund Audits

a)     Audit review 2021/22

b)     Commissioning of the audit strategy 2022/23

·        Risk Register

·        Budget monitoring

At the Chairman’s invitation Andy Cunningham presented a report which highlighted key issues and developments and included details from the Head of the Wiltshire Pension Fund, the Pension Administration Lead, Fund audits, the risk register, administration KPIs, scheme, legal, regulatory and Fund update and a budget update.

The Committee discussed the onboarding of employers onto i-Connect and the problems experienced, how recruitment to the vacancies was progressing and the deferred online process.

The Committee also discussed at length the proposed audit plan. As part of the discussion the Committee felt that Pension Fund officers and the Committee should be responsible for defining the scope and timings of the internal audit programme. It was agreed that the matter should be raised with Andy Brown (Corporate Director Resources, Deputy Chief Executive and s151 Officer) to investigate options and propose a new way forward

With reference to risk register: Risk PEN041 – The Fund's inability to implement a strategy to ensure Climate Change considerations were integral to its investment strategy. The Committee asked for clarity on the reasons why this red risk had been reduced to amber. In response it was stated that a lot of work had been completed, changes in policy had been made and the investment strategy rewritten. It had been a suggestion of the Board to change the status to amber. Risk PEN018 was also altered from Amber to Red. For details see minute 90 relating to Cyber security.

The Committee also asked questions regarding death benefits when the Fund was unable to contact the next of kin. In response the officer stated that there was an HMRC tax requirement to pay the benefit within 2 years or face a tax charge. However, the money remained in the Fund and the death grant would always remain available. The Fund could still pay out years later although there were tax implications at the beneficiary’s marginal rate of income. It was stated that this was not a situation which occurred frequently.

At the conclusion of the debate, it was,

Resolved:

a)             To use the information in the report as a basis for monitoring the Fund’s core activities.

b)             To approve the changes to the Risk Register, apart from Risk PEN018 which would increase to Red, and accept the recommendations for changes/actions made submitted by the Board.

c)             To approve for the Scheme Year 2022/23 the proposed plan of audits which were;

                        i.         The standard audits of the Fund’s Annual Report & Accounts, Key Financial controls, BPP Pension transfers, BPP Cost transparency and compliance against tPR Code of Practice 14; &

                      ii.         Non standard audits covering the Fund’s Pensioner Payroll reconciliation, Investment governance, Cyber Security, Statutory Returns and Administering Authority internal arrangements.      

d)             To note that within the 2022/23 budget additional provision is made for the appointment of specialist auditors in relation to ad-hoc or on-going strategic audits; &

e)             The Committee reaffirms the terms of reference it expects the Fund’s appointed auditors to adhere to.

f)              To approve that officers liaise with SWAP regarding ideal requirements and timescales.

It was stated that training requirements would be discussed under the next agenda item.