Policy And Resources Committee - 23/08/2021

At a MEETING of the POLICY AND RESOURCES COMMITTEE held remotely on 23rd August, 2021.

Present:-

BAILIES

COUNCILLORS

Councillor John ALEXANDER, Convener, in the Chair.

The minute of meeting of this Committee of 21st June, 2021 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATIONS OF INTEREST

Councillors Dawson and Malone and Bailie Roberts declared non-financial interests in respect of Articles III and VI by virtue of being Council representatives on Leisure & Culture Dundee.

Councillor Alexander and Bailie Keenan declared non-financial interests in respect of Article IV by virtue of being Council representatives on the Dundee Alcohol and Drugs Partnership.

Councillor Lynn declared a non-financial interest in Article IV by virtue of being a member of the Drugs Commission.

II MINUTE - PENSION SUB-COMMITTEE AND PENSION BOARD - 8TH MARCH, 2021

The minute of meeting of the Pension Sub-Committee and Pension Board of 8th March, 2021, a copy of which is appended hereto, was submitted for information and record purposes (Appendix I).

III LEISURE & CULTURE DUNDEE - AMENDMENT TO CONSTITUTION

There was submitted Agenda Note AN24-2021 advising that, as a result of the Covid-19 Pandemic, and restrictions put in place around social distancing, the Office of the Scottish Charity Regulator gave special, temporary dispensation for Scottish charities, including Leisure & Culture Dundee, to conduct any formal business meetings, including Board and Committee meetings, by digital means.

Should charities wish to continue to meet by digital means or by hybrid means, the charity's constitution required to be updated to reflect this.

The Leisure & Culture Dundee Board had agreed, subject to Dundee City Council's approval, to amend its constitution to allow all Board and Sub-Committee meetings to be held either digitally, in person or as a hybrid of the two.

The Committee approved this proposed change to the Constitution.

IV ALCOHOL AND DRUG PARTNERSHIP: SELF-ASSESSMENT FINDINGS

On a reference to Article III of the minute of meeting of this Committee held on 22nd February, 2021, there was submitted Report No 214-2021 by the Chief Executive informing members of the findings of the Alcohol and Drug Partnerships self-assessment process undertaken between May and July, 2021 to evidence and evaluate the Dundee Partnerships performance in implementing the Action Plan for change and addressing the 16 recommendations made by the Dundee Drug Commission in 2019.

The Committee:-

(i) noted the contents of the report, including the overview of the self-assessment process undertaken between May and July, 2021, and findings of the self-assessment (Sections 4.4 and 4.5 and Appendix 1 of the report);

(ii) noted that the self-assessment report had been submitted to the Dundee Drugs Commission to support their work to independently evaluate progress towards implementation of the recommendations made by them in 2019 (Section 4.6.1 of the report);

(iii) noted that amendments would be made to the Action Plan for Change based on the self-assessment findings (Section 4.6.2 of the report) and instructed the Chief Officer to submit the revised plan to the Integration Joint Board for information once it had been agreed by the Dundee Partnership;

(iv) noted the additional funds provided by Dundee City Council and the Scottish Government and planned investment to support and accelerate actions contained within the Action Plan for Change (Section 3 and Section 4.7 of the report); and

(v) agreed to seek additional opportunities to increase funding from both local and national sources, in order to progress the revised Action Plan and to address developing service requirements.

V JOINT CITY PLAN AND COUNCIL PLAN PROGRESS REPORT 2020/2021

There was submitted Report No 211-2021 by the Chief Executive providing elected members with updates on progress on both the City Plan and the Council Plan during financial year 2020/2021 and at its fourth year of implementation.

The Committee:-

(i) noted the joint City Plan and Council Plan progress report; and

(ii) remitted the report to the Scrutiny Committee for further consideration.

VI LEISURE & CULTURE DUNDEE - PERFORMANCE AND IMPACT REPORT FOR 2020/2021

There was submitted Report No 215-2021 by the Chief Executive providing the annual report setting out financial and performance information on Leisure & Culture Dundee to meet the guidance on Following the Public Pound.

The Committee:-

(i) noted the performance across the range of services undertaken by Leisure & Culture Dundee in the annual report appended to the report as Appendix 1;

(ii) noted the contribution to the strategic priority themes in the Dundee Partnerships City Plan appended to the report as Appendix 2;

(iii) instructed the Chief Executive and Director of Leisure & Culture Dundee to review the agreements in place between the Council and Leisure & Culture Dundee to bring forward any necessary amendments; and

(iv) instructed the Chief Executive and the Director of Leisure & Culture Dundee to report back to this Committee as soon as possible setting out:-

(a) Leisure & Culture Dundee's proposals for the operation of its facilities and services during the next Covid-19 recovery phase in the remainder of Financial Year 2021/2022; and

(b) the financial and other implications of Leisure & Culture Dundees proposals, and any requests for financial or other assistance which Leisure & Culture Dundee wished to make of Dundee City Council, and the Dundee Partnership, to address the effects of the Pandemic on Leisure & Culture Dundees operations.

VII BREXIT UPDATE

There was submitted Report No 218-2021 by the Chief Executive updating members on the latest issues, impacts and opportunities arising from the UKs departure from the European Union.

The Committee:-

(i) noted the updates provided in the report;

(ii) remitted officers to continue to support EU citizens who needed advice and assistance with late applications to the EU Settlement Scheme and with any consequences of not having obtained settled or pre-settled status; and

(iii) noted that bids had been submitted to the Community Renewal Fund and remitted officers to continue to look for opportunities to maximise funding for the city from any replacements for EU funds.

VIII CAPITAL EXPENDITURE MONITORING 2021/2022

There was submitted Report No 212-2021 by the Executive Director of Corporate Services appraising members of the latest position regarding the Council's Capital Plan 2021/2026.

The Committee noted the latest position regarding the Council's Capital Plan 2021/2026.

IX REVENUE MONITORING 2021/2022

There was submitted Report No 224-2021 by the Executive Director of Corporate Services providing an analysis of the 2021/2022 projected revenue outturn as at 30th June, 2021 monitored against the adjusted 2021/2022 Revenue Budget.

The Committee:-

(i) noted that the overall General Fund as at 30th June, 2021 was projecting an underspend of 2,397,000 against the adjusted 2021/2022 Revenue Budget;

(ii) noted the position on Covid-related expenditure (projected to be 8.3m) and Covid funding, as set out in paragraph 3.1 of the report;

(iii) noted that the Housing Revenue Account as at 30th June, 2021 was projecting an underspend of 1,418,000 against the adjusted HRA 2021/2022 Revenue Budget;

(iv) agreed that the Council Management Team would take every reasonable action to ensure that the 2021/2022 revenue expenditure was below or in line with the adjusted Revenue Budget;

(v) instructed the Executive Director of Corporate Services, in conjunction with the Council Management Team, to continue to monitor the Councils 2021/2022 projected revenue outturn to assist with the cost pressures resulting from Covid-19;

(vi) agreed that costs associated with the VER/VR schemes, up to a maximum amount of 3.5m in 2021/2022, would be met from the remaining balance of capital receipts set‑aside; and

(vii) noted that total VER/VR costs met from capital receipts set aside in 2020/2021 were 0.723m, resulting in full year salary savings totalling 1.330m which was reflected in budgets going forward.

John ALEXANDER, Convener.

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held remotely on 8th March, 2021.

APPENDIX I

Present:-

PENSION SUB-COMMITTEE

BAILIES

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, in the Chair.

It was noted that apologies had been received from Councillors Brawn and Davy, and Gordon Murray and Claire Shepherd.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTE OF PREVIOUS MEETING

The minute of meeting of 7th December, 2020 was submitted and approved.

III RE-APPOINTMENT OF TAYSIDE PENSION FUND BOARD MEMBERS

There was submitted Report Number 67-2021 by the Executive Director of Corporate Services setting out the proposed re-appointment of the current members of the Tayside Pension Fund Pension Board.

It was agreed that the Chair of the Pension Sub-Committee, as delegated by the Policy and Resources Committee, approve the re-appointment of all current members of the Pension Board of Tayside Pension Fund as required by pensions regulations.

IV RISK REGISTER

There was submitted Report No 68-2021 by the Executive Director of Corporate Services updating the Risk Register for the Tayside Pension Fund.

The Sub-Committee and Board approved the Quarterly Risk Register for Tayside Pension Fund which was updated on 10th February, 2021, and noted the following changes to risk profile since the previous report:-

Risk 1: Failure to process pension payments and lump sums on time.

Risk level had reduced as processes had been adapted to accommodate remote working which had successfully resulted in faster processing times. This had also enabled more effective resource allocation to meet requirements.

Risk 13: Failure to hold personal data securely (incorporating Cyber Crime).

Risk level had reduced as additional controls had been incorporated into revised processes.

Risk 14: Failure to keep pension records up-to-date and accurate.

Risk level had reduced as employer data confirmation exercises had been undertaken.

V TAYSIDE PENSION FUND RISK MANAGEMENT POLICY AND STRATEGY

There was submitted Report No 69-2021 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

VI TAYSIDE PENSION FUND TRAINING AND ATTENDANCE POLICY AND TRAINING PLAN 2021-2022

There was submitted Report No 70-2021 by the Executive Director of Corporate Services presenting Tayside Pension Funds Training and Attendance Policy which was subject to annual review and the Training Plan for 2021-2022.

The Sub-Committee and Board noted that the training requirements of 2020-2021 had not been achieved due to Covid-19. The plan had been carried forward for remote delivery during the course of 2021/2022.

The Sub-Committee and Board also approved:-

(i)                            Training and Attendance Policy Contained in Appendix 1 to the report; and

(ii)                           Training Plan for 2021-2022 contained in report.

VIl PENSION ADMINISTRATION PERFORMANCE

 

There was submitted Report No 71-2021 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.

 

VIIl INTERNAL AUDIT RISK ASSESSMENT AND AUDIT PLAN 2021/2022

 

There was submitted Report No 72-2021 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 2021/2022.

 

The Sub-Committee and Board to review and approve the internal audit plans by PricewaterhouseCoopers (PwC) as detailed in Appendix A to the report.

 

lX TAYSIDE PENSION FUND

 

There was submitted Report No 73-2021 by the Executive Director of Corporate Services providing a summary of the responsibilities and approach of Audit Scotland in respect of Tayside Pension Fund for 2020/2021.

 

The Sub-Committee and Board agreed to note the report by Audit Scotland.

 

X TAYSIDE PENSION FUND INTERNAL ANNUAL AUDIT REPORT 2020/2021

 

There was submitted Report No 74-2021 by the Executive Director of Corporate Services, the Annual Audit Report for 2020/2021 prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC) for consideration.

 

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, and approved the management response.

 

XI TREASURY POLICY STATEMENT 2021/2022

 

There was submitted Report No 75-2021 by the Executive Director of Corporate Services revising the Councils Treasury Policy Statement which is 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 attached Treasury Policy Statement 2021/2022, noting that the Treasury Policy Statement must be reviewed annually.

 

XIl TREASURY MANAGEMENT STRATEGY 2021/2022

 

There was submitted Report No 76-2021 by the Executive Director of Corporate Services reviewing the Treasury Management Strategy for Tayside Pension Fund.

 

The Sub-Committee and Board examined the dates set out in the timetable and agreed the proposed programme of meetings as detailed.

 

XIIl PENSION ADMINISTRATION STRATEGY

 

There was submitted Report No 77-2021 by the Executive Director of Corporate Services setting out the Funds policy in respect of the standards required of both the Fund and the participating employers to ensure that statutory obligations were met and also to demonstrate effective and efficient service delivery. The strategy contained a variety of performance measures against which the Fund and participating employers were assessed, with performance reported to the Sub-Committee and Board.

 

The Sub-Committee and Board agreed to approve the strategy contained within the report, noting the introduction of charges to employers in exceptional circumstances and also consented to its distribution to all employers.

 

XIV TAYSIDE PENSION FUND

 

There was submitted Report No 78-2021 by the Executive Director of Corporate Services detailing the range of discretions available to Dundee City Council as the administering authority of Tayside Pension Fund, and the current policies in place in relation to these.

 

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

 

XV TAYSIDE PENSION FUND COMMUNICATION POLICY

 

There was submitted Report No 79-2021 by the Executive Director of Corporate Services presenting a communications policy as required by the Local Government Pension Scheme (Scotland) Regulations 2014.

 

The Sub-Committee and Board approved the revised Communications Policy which had been reviewed in conjunction with the Funds Administration Strategy.

 

XVI TAYSIDE PENSION FUND ACTUARIAL VALUATION AT 31ST MARCH, 2020

 

There was submitted Report No 80-2021 by the Executive Director of Corporate Services providing an update on the Actuarial Valuation of Tayside Pension Fund at 31st March, 2020.

 

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

 

XVIl FUNDING STRATEGY STATEMENT

 

There was submitted Report No 81-2021 by the Executive Director of Corporate Services reviewing the Funding Strategy Statement for the Tayside Pension Fund.

 

The Sub-Committee and Board approved the Funding Strategy Statement for Tayside Pension Fund contained in Appendix 1 to the report.

 

XVIIl STATEMENT OF INVESTMENT PRINCIPLES REVIEW

 

There was submitted Report No 82-2021 by the Executive Director of Corporate Services reviewing 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 contained in Appendix 1 to the report.

 

XIX UK STEWARDSHIP CODE

 

There was submitted Report No 83-2021 by the Executive Director of Corporate Services setting out the revision to the UK Stewardship Code.

 

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

 

XX TAYSIDE PENSION FUND BUSINESS PLAN 2021/2022

 

There was submitted Report No 84-2021 by the Executive Director of Corporate Services introducing the annual Business Plan for the Tayside Pension Fund.

 

The Sub-Committee and Board noted the information within the report and approved the 2021/2022 Business Plan which applied to the administration and management of the Tayside Pension Fund.

 

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.

 

XXI TAYSIDE PENSION FUNDS

 

(a) PERFORMANCE SUMMARIES

 

There was submitted Report No 86-2021 reviewing the investment performance of the Funds Investment Managers for the quarter to 31st December, 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

 

There was submitted Report No 87-2021 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 31st December, 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) SECURITIES LENDING SIX MONTH ACTIVITY TO 31ST DECEMBER, 2020

 

There was submitted Report No 89-2021 by the Executive Director of Corporate Services providing an update on Securities Lending activity for the period ended 31st December, 2020.

 

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

 

XXIl ANNUAL PERFORMANCE REVIEW TO 31ST DECEMBER, 2020

 

There was submitted Report No 88-2021 by the Executive Director of Corporate Services considering the Isio report Annual Review of Investment Performance 2020 completed in February 2021.

 

The Sub-Committee and Board noted the content of the report by Isio as detailed in Appendix A to the report.

 

XXIII PRESENTATION

 

Jason Freeman and Sabriyah Denham from GSAM gave a short presentation to the Sub-Committee and Board.

 

After Mr Freeman and Ms Denham 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.