Policy And Resources Committee - 11/01/2021

At a MEETING of the POLICY AND RESOURCES COMMITTEE held remotely on 11th January, 2021.

Present:-

BAILIES

COUNCILLORS

Councillor John ALEXANDER, Convener, in the Chair.

The minute of meeting of this Committee of 7th December, 2020 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

Bailie Scott declared a financial interest in Article III by virtue of his employment with the Department for Work and Pensions and took no part in the debate.

II MINUTES

(a) PENSION SUB-COMMITTEE AND PENSION BOARD - 21ST SEPTEMBER, 2020

(b) PERSONNEL APPOINTMENTS SUB-COMMITTEE - 11TH, 17TH AND 20TH NOVEMBER, 2020

(c) PERSONNEL APPOINTMENTS SUB-COMMITTEE - 10TH DECEMBER, 2020

The minutes of meetings of the above Sub-Committees, copies of which are appended hereto, were submitted for information and record purposes (Appendices I, II and III).

III PUBLIC SECTOR WORKERS

It was reported that this item had been placed on the agenda at the request of Councillor Alexander.

Following discussion, the Committee resolved the following:-

Council notes the fact that the UK Government is proposing a public sector pay freeze for the vast majority of employees and below inflation rise for even the lowest paid employees as a part of the Chancellors Comprehensive Spending Review.

Council notes that the role of public service workers has been critical in responding to and helping both Scotland and Dundee manage the impact of Covid-19 and considers that without the hard work of public servants, especially frontline workers, such as cleaners and care assistants, we would not have been able to protect the city and support vulnerable people to the extent that we have through this crisis.

Council recognises that the economic impact of Covid-19 goes far beyond the public sector, but agrees the specific contribution of public sector employees should be recognised and appropriately rewarded.

Council also recognises the major impact in Barnett consequentials of the UK Governments decision which will undermine the Scottish Governments ability to fund uplifts.

Council therefore agrees that the Council Leader write to the UK Government to make clear that public sector workers should be paid fairly and appropriately by fully funding any future pay increases that are agreed between employers and trade unions, including for those working in public services in Scotland by allocating the necessary funds to the Scottish Government.

IV LOCAL GOVERNMENT FUNDING

It was reported that this item had been placed on the agenda at the request of Bailie Macpherson.

Following discussion, the Committee resolved the following:-

Committee notes the Scottish Governments recent announcement of a package of financial flexibilities and extra funding for Councils to address the financial pressures caused by the coronavirus (Covid-19) health emergency and covering the next two years.

Whilst Committee welcomes this recognition of the financial crisis local government is in, it remains concerned that this financial package does not fully solve the problem.

Only 139m of this package was new money (49m of which had already been announced). The remainder of the package will only be available if local authorities make full use of the complicated set of fiscal flexibilities set out.

These fiscal flexibilities are no substitute for a fair funding settlement. Dundee City Council still faces a perfect financial storm of extra demand for services at a time of substantial loss of income that means impossible choices about the funding of services will be faced going forward.

Committee notes that 2bn of efficiencies have already been taken out of local government over the last decade. The financial impact of Covid-19 will not be confined to the next few months and, along with the detrimental impact of Brexit adding to the negative effects on the wider economy, the financial crisis facing local government is of real concern.

Committee also notes that the Scottish budget is dependent on the UK Government.

Committee therefore pledges its support for UNISONs campaign on this matter and calls on the Scottish Government to plug the gap in local government finance in the 2021/2022 budget to:-

- Reward local government workers Local government workers have been the hidden heroes of this pandemic. Their invaluable contribution to the Covid-19 response should be recognised and rewarded.

- Secure the long-term financial stability of local government - Local government needs long-term stability to protect essential jobs and services for the future. The salami slicing of services needs to stop.

- Shape local government to be fit for the post-pandemic future It is a matter of fact that a number of roles undertaken by local government workers have changed as a result of the pandemic. These need to be recognised and their job evaluation reviewed as a result.

- Fully consolidate the Living Wage - It is vital that the existing commitment to fully consolidating the living wage for all local government workers across Scotland as committed to through our last pay deal is delivered.

V BREXIT UPDATE

There was submitted Report No 43-2021 by the Chief Executive providing an update on the future relationship between the UK and the EU, on other related domestic political developments, and on work by the Council to deal with the consequences of the new arrangements.

The Committee:-

(i) noted the outcome of negotiations between the UK and the EU on their future relationship and other related domestic political developments; and

(ii) noted the work which continued to be carried out by the Council to deal with the consequences of the new arrangements from 1st January, 2021.

VI DUNDEE HEALTH AND SOCIAL CARE PARTNERSHIP ANNUAL PERFORMANCE REPORT 2019/2020

There was submitted Report No 38-2021 by the Chief Officer, Dundee Health and Social Care Partnership submitting the Dundee Health and Social Care Partnership Annual Performance Report 2019/2020 to Dundee City Council, as one of the statutory partners under the Public Bodies (Joint Working) (Scotland) Act 2014, for information.

The Committee noted the publication of the Dundee Health and Social Care Partnership 2019/2020 Annual Performance Report, both full and summary versions, appended to the report.

VII TREASURY MANAGEMENT ACTIVITY 2020/2021 (MID-YEAR REVIEW)

There was submitted Report No 15-2021 by the Executive Director of Corporate Services reviewing the Treasury Management activities for the period 1st April to 30th September, 2020.

The Committee noted the information contained in the report.

VIII CAPITAL EXPENDITURE MONITORING 2020/2021

There was submitted Report No 1-2021 by the Executive Director of Corporate Services appraising members of the latest position regarding the Council's Capital Plan 2020/2025.

The Committee:-

(a) noted the latest position regarding the Council's Updated Capital Plan 2020/2025; and

(b) on a reference to Article XI of the minute of meeting of this Committee of 28th September, 2020, noted that officers would continually monitor and review the capital programme for the ongoing effects of Covid-19, in terms of projected cost and timescales for delivery, and would report any variations in future capital monitoring reports.

IX REVENUE MONITORING 2020/2021

There was submitted Report No 3-2021 by the Executive Director of Corporate Services providing members with an analysis of the 2020/2021 projected revenue outturn as at 30th November, 2020 monitored against the adjusted 2020/2021 Revenue Budget.

The Committee:-

(i) noted that the overall General Fund as at 30th November, 2020 was projecting an underspend of 3,935,000 against the adjusted 2020/2021 Revenue Budget, excluding Covid-19 related expenditure and loss of income. An update on the Covid‑19 Financial Recovery Plan was considered by the Policy and Resources Committee on 7th December, 2020. (Article XI of the minute of meeting of 7th December, Report No 302-2020 refers). This report showed an overall projected deficit position for the Council of 6.531m. This included a contribution from a general fund projected underspend of 2.361m. A further update report would be submitted to the Policy and Resources Committee in February, 2021 to advise elected members of the progress in aligning 2020/2021 spend levels more closely with the funding available;

(ii) noted that the Housing Revenue Account as at 30th November, 2020 was projecting an underspend of 2,340,000 against the adjusted HRA 2020/2021 Revenue Budget;

(iii) agreed that the Council Management Team would take every reasonable action to ensure that the 2020/2021 revenue expenditure was below or in line with the adjusted Revenue Budget; and

(iv) instructed the Executive Director of Corporate Services, in conjunction with the Council Management Team, to continue to monitor the Councils 2020/2021 projected revenue outturn to assist with the cost pressures resulting from Covid-19.

X DUNDEE CITY COUNCIL 2019/2020 - ACCOUNTS AND AUDIT

(a) AUDIT STATEMENT OF ACCOUNTS

(i) Dundee City Council

The above report was submitted and noted (Report No 4-2021).

(ii) Dundee City Council Charitable Trusts

The above report was submitted and noted (Report No 5-2021).

(iii) Lord Provost of Dundee Charity Fund

The above report was submitted and noted (Report No 6-2021).

(iv) The Dundee Trust

The above report was submitted and noted (Report No 7-2021).

(b) EXTERNAL AUDITOR'S REPORT

The above report was submitted and noted (Report No 8-2021).

(c) DUNDEE CITY COUNCIL 2019/2020 - ACCOUNTS AND AUDIT (RESPONSE TO THE EXTERNAL AUDITOR'S ANNUAL AUDIT REPORT)

There was submitted Report No 9-2021 by the Executive Director of Corporate Services in response to the report prepared by the Council's External Auditor's Report on the audit of Dundee City Council for the year to 31st March, 2020.

The Committee:-

(i) noted the contents of the External Auditor's Report, including the completed action plan at Appendix 1, and in particular that Audit Scotland had issued an unqualified audit opinion on each of the 2019/2020 Annual Accounts noted above; and

(ii) noted this report as the Councils formal response to the External Auditor's Report.

John ALEXANDER, Convener.

At a JOINT MEETING of the PENSION SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 21st September, 2020.

APPENDIX I

Present:-

PENSION SUB-COMMITTEE

BAILIES

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, in the Chair.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTE OF PREVIOUS MEETING

The minute of meeting of 19th December, 2019 was submitted and approved.

The undernoted items had previously been agreed remotely by members of the Sub-Committee and Board due to the Covid-19 Pandemic.

III TAYSIDE PENSION FUND ANNUAL AUDIT PLAN 2019/2020

There was submitted Report No 119-2020 by the Executive Director of Corporate Services providing a summary of the responsibilities and approach of Audit Scotland in respect of Tayside Pension Funds external audit for 2019/2020.

The Sub-Committee and Board noted the report by Audit Scotland.

IV TREASURY POLICY STATEMENT

There was submitted Report No 121-2020 by the Executive Director of Corporate Services reviewing the Councils Treasury Policy Statement which was intended to govern all treasury activities carried out by Tayside Pension Fund.

The Sub-Committee and Board approved the policies and procedures laid out in the Treasury Policy Statement 2020/2021, noting that the Treasury Policy Statement must be reviewed annually.

V TREASURY MANAGEMENT STRATEGY

There was submitted Report No 122-2020 by the Executive Director of Corporate Services reviewing the Treasury Management Strategy for Tayside Pension Fund.

The Sub-Committee and Board approved the Treasury Management Strategy.

VI FUNDING STRATEGY STATEMENT

There was submitted Report No 123-2020 by the Executive Director of Corporate Services reviewing the Funding Strategy Statements for the Tayside Pension Fund.

The Sub-Committee and Board approved the Funding Strategy Statement for Tayside Pension Fund.

VII STATEMENT OF INVESTMENT PRINCIPLES

There was submitted Report No 124-2020 by the Executive Director of Corporate Services reviewing the Statements of Investment Principles for Tayside Pension Fund.

The Sub-Committee and Board noted the information within the report and approved the Statements of Investment Principles.

VIII COVID-19 AND EMPLOYERS CONTRIBUTIONS

There was submitted Report No 145-2020 by the Executive Director of Corporate Services providing information on Tayside Pension Fund employers and their ability to meet their responsibilities in respect of their monthly pension contributions in light of the current public health restrictions. The report also detailed available remedies allowed within LGPS regulations.

The Sub-Committee and Board agreed that authority to make suitable arrangements in relation to amending employer contribution scheduling be delegated to the Executive Director of Corporate Services in line with the requirements of The Pensions Regulator as detailed in the report and informed by a risk-based assessment in keeping with guidance available.

IX INTERNAL AUDIT RISK ASSESSMENT AND AUDIT PLAN 2019/2020 AND 2020/2021

There was submitted Report No 151-2020 by the Executive Director of Corporate Services setting out the risk assessment undertaken by PwC and detailing their internal audit plans for Tayside Pension Fund for 2019/2020 and 2020/2021.

The Sub-Committee and Board reviewed and approved the Internal Audit plans by PwC as detailed.

X TAYSIDE PENSION FUND INTERNAL ANNUAL AUDIT REPORT 2019/2020

There was submitted Report No 164-2020 by the Executive Director of Corporate Services providing the Sub-Committee and Board with the Annual Audit Report prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC).

The Sub-Committee and Board noted the content of the annual report as well as the content of the appended reports on specific audit exercises undertaken, approved the management response.

XI TAYSIDE PENSION FUND ANNUAL GOVERNANCE AND GOVERNANCE COMPLIANCE STATEMENTS

There was submitted Report No 165-2020 by the Executive Director of Corporate Services presenting the Annual Governance Statement and Governance Compliance Statement for approval and inclusion into the unaudited Annual Accounts for the year ended 31st March, 2020. The report also set out the governance arrangements of Tayside Pension Fund and the extent to which it complied with regulations.

The Sub-Committee and Board agreed to:-

(i) approve the Annual Governance and Governance Compliance Statements which were included as an Appendix to the report; and

(ii) instructed the inclusion of the statements in the Annual Accounts for the year to 31st March, 2020.

XII TAYSIDE PENSION FUND ANNUAL REPORT AND ACCOUNTS 2019/2020

There was submitted Report No 166-2020 by the Executive Director of Corporate Services providing additional commentary on the unaudited Annual Accounts 2019/2020 which were being submitted to the Sub-Committee and Board along with the report.

The Sub-Committee and Board agreed to:-

(i) note the content of the covering report;

(ii) note the unaudited Annual Accounts which had been submitted along with the report in Appendix A;

(iii) instruct the Executive Director of Corporate Services to arrange for the unaudited Accounts to be signed as necessary; and

(iv) instruct the Executive Director of Corporate Services to submit the Annual Accounts to the Funds external auditor.

The undernoted items were considered remotely by members of the Sub-Committee and Board in the usual way.

XIII TAYSIDE PENSION FUND RISK MANAGEMENT POLICY AND STRATEGY

There was submitted Report No 115-2020 by the Executive Director of Corporate Services presenting the Tayside Pension Funds Risk Policy and Strategy which would be subject to annual review.

The Sub-Committee and Board approved the Risk Management Policy and Strategy.

XIV TAYSIDE PENSION FUND TRAINING AND ATTENDANCE POLICY

There was submitted Report No 116-2020 by the Executive Director of Corporate Services presenting the Tayside Pension Funds Training Policy which would be subject to annual review.

The Sub-Committee and Board approved the Training Policy.

XV TAYSIDE PENSION FUND TRAINING PLAN 2020/2021

There was submitted Report No 117-2020 by the Executive Director of Corporate Services presenting the Tayside Pension Funds Training Plan which would be subject to annual review.

The Sub-Committee and Board approved the Training Plan for 2020/2021.

XVI TAYSIDE PENSION FUND BUSINESS PLAN 2020/2021

There was submitted Report No 125-2020 by the Executive Director of Corporate Services introducing the annual business plan for the Tayside Pension Fund.

The Sub-Committee and Board agreed to note the information within the report and approve the 2020/2021 Business Plan which applied to the administration and management of the Tayside Pension Fund.

XVII RISK REGISTER

There was submitted Report No 244-2020 by the Executive Director of Corporate Services updating the Risk Register for Tayside Pension Fund.

The Sub-Committee and Board approved the Quarterly Risk Register for Tayside Pension Fund which was updated on 4th September, 2020, and noted the following change to the risk profile since the previous report:-

- Risk 2 - Failure to collect and account for employer contributions

Due to disruptions caused by Covid-19, there was an increased likelihood that employers would be unable to provide contributions within required timescales.

- Risk 7 - Significant rise in employer contribution due to poor/negative investment returns

With a negative global economic outlook, there was an increased likelihood of significantly reduced investment returns.

- Risk 10 - Equity Risk

There was an increased risk of substantial market decline resulting in financial loss due to concerns around coronavirus and the impact that this may have on the global supply chain.

XVIII PENSION ADMINISTRATION PERFORMANCE

 

There was submitted Report No 245-2020 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration.

 

The Sub-Committee and Board noted the content of the report.

 

XIX TAYSIDE PENSION FUND ACCOUNTS 2019/2020

 

(a) TAYSIDE PENSION FUND'S 2019/2020 - ACCOUNTS AND AUDIT

 

There was submitted Report No 246-2020 by the Executive Director of Corporate Services reporting on the outcome of the external audit of Tayside Pension Fund for the year to 31st March, 2020. A copy of the External Auditor's Annual Audit Report (Report No 248-2020) and the 2019/2020 Audited Statement of Accounts for the Tayside Pension Fund (Report No 247-2020) was also considered.

 

The Committee noted the content of External Auditor's Annual Audit Report, in particular that Audit Scotland anticipate issuing an unqualified audit opinion.

 

(b) EXTERNAL AUDITOR'S ANNUAL REPORT

 

There was submitted and noted by the Sub-Committee and Board Report No 248-2020 by Audit Scotland.

 

(c) DRAFT AUDITED STATEMENT OF ACCOUNTS 2019/2020

 

There was submitted and noted by the Sub-Committee and Board, Report No 247-2020 by the Executive Director of Corporate Services.

 

XX TAYSIDE PENSION FUND INTERNAL AUDIT

 

Patrick Ruddy from Pricewaterhouse Coopers gave a short presentation to the Pension Sub‑Committee and Board.

 

The Sub-Committee and Board noted accordingly.

 

XXI ANNUAL TREASURY MANAGEMENT ACTIVITY 2019/2020

 

There was submitted Report No 249-2020 by the Executive Director of Corporate Services reviewing the Treasury Management activities for the period 1st April, 2019 to 31st March, 2020.

 

The Sub-Committee and Board noted the information contained within the report.

 

The Sub-Committee and Board resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.

 

XXII TAYSIDE PENSION FUND

 

(a) PERFORMANCE SUMMARIES

 

There was submitted Report No 250-2020 reviewing the investment performance of the Funds Investment Managers for the quarter to 30th June, 2020. The report compared investment performance of the funds with the Funds specific benchmarks which consisted of various stock and security market indices.

 

The Sub-Committee and Board noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.

 

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS 1ST APRIL, 2020 TO 30TH JUNE, 2020

 

There was submitted Report No 211-2020 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 30th June, 2020 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.

 

The Sub-Committee and Board noted the information contained therein with regard to the activities of the Tayside Pension Fund and its Fund Managers.

 

(c) QUARTERLY FUNDING REPORT

 

A verbal update was given to the Sub-Committee and Board regarding Quarterly Funding.

 

The Sub-Committee and Board noted the update given.

 

XXIll SECURITIES LENDING SIX MONTH ACTIVITY TO 30TH JUNE, 2020

 

There was submitted Report No 251-2020 by the Executive Director of Corporate Services providing an update on Securities Lending activity for the period ended 30th June, 2020.

 

The Sub-Committee and Board noted the content of the report.

 

XXlV ANNUAL PERFORMANCE REVIEW TO 31ST DECEMBER, 2019

 

There was submitted Report No 131-2020 by the Executive Director of Corporate Services the Annual Review of Investment Performance 2019 by the Sub-Committee and Boards Investment Consultants, which had been completed in February, 2020.

 

The Sub-Committee and Board noted the report as detailed.

 

XXV PRESENTATION

 

Clare Erskine-Murray and Tom Wright from Baillie Gifford gave a short presentation to the Sub‑Committee and Board.

After Ms Erskine Murray and Mr Wright had given their presentation and answered questions from members, the Chair thanked the presenters on behalf of members of the Sub-Committee and Board.

 

 

 

 

Willie SAWERS, Chair.

 

At MEETINGS of the PERSONNEL APPOINTMENTS SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held remotely on 11th November, 2020, 17th November, 2020 and 20th November, 2020.

 

APPENDIX II

 

Present:-

 

On 11th November, 2020:-

 

BAILIES

 

Christina ROBERTS

Willie SAWERS

Helen WRIGHT

 

COUNCILLORS

 

John ALEXANDER	Roisin SMITH	Craig DUNCAN
	Margaret RICHARDSON

 

On 17th November, 2020:-

 

BAILIES

 

Christina ROBERTS

Willie SAWERS

Helen WRIGHT

 

COUNCILLORS

 

John ALEXANDER	Roisin SMITH	Craig DUNCAN
	Margaret RICHARDSON

 

On 20th November, 2020:-

 

BAILIES

 

Christina ROBERTS

Willie SAWERS

Helen WRIGHT

 

COUNCILLORS

 

John ALEXANDER	Roisin SMITH	Craig DUNCAN
	Margaret RICHARDSON

 

Councillor John ALEXANDER, in the Chair.

 

Unless marked * all items stand delegated.

 

The Sub-Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraph 1 of Part I of Schedule 7A of the Act.

 

I DECLARATION OF INTEREST

 

No declarations of interest were made.

 

II APPOINTMENT OF EXECUTIVE DIRECTOR OF CORPORATE SERVICES

 

At the meeting held on 11th November, 2020, there were submitted details of the applications received and the Sub-Committee agreed the candidates to be invited for interview on 20th November, 2020.

 

At the meeting held on 17th November, 2020, which the Convener agreed be held as a matter of urgency in terms of Standing Order No 17(b) in view of the timescales involved, the Sub-Committee heard a verbal report on the Assessment Centre Process.

 

At the meeting held on 20th October, 2020, the Sub-Committee interviewed the candidates. Following an exchange of views, and after hearing the officers, the Sub-Committee unanimously agreed to offer the post of Executive Director of Corporate Services to Mr Robert Emmott who intimated his acceptance.

 

 

 

 

John ALEXANDER, Convener.

 

At a MEETING of the PERSONNEL APPOINTMENTS SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE held remotely on 10th December, 2020.

 

APPENDIX III

 

Present:-

 

Bailie Willie SAWERS

 

COUNCILLORS

 

John ALEXANDER	Stewart HUNTER	Richard McCREADY
Will DAWSON	Michael MARRA	Craig DUNCAN

 

Also in Attendance:-

 

Sinclair AITKEN, OBE, Leisure & Culture Dundee (Chair)

Moira METHVEN, Leisure & Culture Dundee (Trustee)

Ian MATHERS, Leisure & Culture Dundee (Trustee)

 

Councillor John ALEXANDER, in the Chair.

 

Unless marked * all items stand delegated.

 

The Convener agreed that the undernoted items of business be considers as a matter of urgency in terms of Standing Order No 17(b) in view of the timescales involved.

 

The Sub-Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraph 1 of Part I of Schedule 7A of the Act.

 

I DECLARATION OF INTEREST

 

No declarations of interest were made.

 

II APPOINTMENT OF DIRECTOR, LEISURE AND CULTURE

 

Reference was made to Article II of the minute of meeting of this Sub-Committee held on 26th September 2019, wherein it was agreed to appoint Ms Judy Dobbie as Acting Director, Leisure and Culture.

 

It was reported that this appointment would lapse on 31st December, 2020.

 

Following an exchange of views, and after hearing the officers, the Sub-Committee unanimously agreed to offer the post of Director, Leisure and Culture and Managing Director, Leisure & Culture Dundee on a permanent basis to Ms Judy Dobbie who intimated her acceptance.

 

 

 

 

John ALEXANDER, Convener.