Policy And Resources Committee - 10/01/2022

At a MEETING of the POLICY AND RESOURCES COMMITTEE held remotely on 10th January, 2022.

Present:-

BAILIES

COUNCILLORS

The minute of meeting of this Committee of 6th December, 2021 was held as read.

Unless marked thus * all items stand delegated.

Councillor ALEXANDER, Convener, in the Chair.

I DECLARATION OF INTEREST

There were no declarations of interest.

II MINUTE - PENSION SUB-COMMITTEE AND PENSION BOARD - 20TH SEPTEMBER, 2021

The minute of meeting of the Pension Sub-Committee and Pension Board of 20th September, 2021, a copy of which is appended hereto, was submitted for information and record purposes (Appendix 1).

III BREXIT UPDATE

There was submitted Report No 2-2022 by the Chief Executive updating members on the latest issues, risks and opportunities arising from the UKs departure from the European Union. It also sought approval for a strategy and roadmap to guide work going forward.

The Committee:-

(i) noted the updates included in the report, in particular the updated risk and opportunities register referred to in section 5.1(a) and attached as Appendix 1;

(ii) approved the post-Brexit Strategy and Roadmap referred to in section 5.1(b) and attached as Appendix 2;

(iii) 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

(iv) remitted officers to continue to look for opportunities to maximise funding for the city from any replacements for EU funds.

IV LOCAL GOVERNMENT FINANCE SETTLEMENT 2022/2023 AND FINANCIAL IMPLICATIONS FOR THE CITY COUNCIL

There was submitted Report No 22-2022 by the Executive Director of Corporate Services advising elected members of the figures issued by the Scottish Government on 20th December, 2021 in respect of the Local Government Finance Settlement for 2022/2023. The report identified the likely implications for the City Council and set out the current position on the Council's Provisional 2022/2025 Revenue Budget and 2022/2027 Capital Plan. The Councils agreed long-term financial strategy was also set out.

The Committee:-

(i) noted the contents of the report;

(ii) noted the Council's Revenue and Capital Funding Allocations for 2022/2023, as issued by the Scottish Government on 20th December, 2021, and the associated implications;

(iii) noted the package of measures that made up the overall settlement to be provided to Local Government, as advised by the Cabinet Secretary for Finance and Economy in a letter to COSLA dated 9th December, 2021 (and as detailed in Section 5.4 of the report);

(iv) noted the current position on the Council's Provisional 2022/2025 Revenue Budget and 2022/2027 Capital Plan;

(v) noted that the financial information included in the report would be updated as necessary and included in the Council Tax proposals to be submitted to the Special Policy and Resources Committee on 24th February, 2022;

(vi) agreed the procedures to be followed for setting the 2022/2023 Revenue Budget and Council Tax level, as set out in Section 11 and Appendix 1 of the report;

(vii) noted the agreed long-term financial strategy as set out in Section 8 of the report;

(viii) welcomed the unanimous decision by COSLA Council Leaders expressing extreme disappointment in the local government financial settlement that had been circulated to Councils and reiterated COSLAs view that this settlement, which was a 371m real terms cut in core funding across Scotland, was unacceptable;

(ix) noted the absence of any funding for pay increases, inflation or increased demand for services;

(x) welcomed COSLAs decision to continue to press the Scottish Government for a fair funding settlement and called on the Scottish Government to deliver a fair funding settlement; and

(xi) called on the Leader of the Council to update the Committee on the outcome of lobbying he was taking part in as a result of decisions taken by COSLA Council Leaders.

V REVENUE MONITORING 2021/2022

There was submitted Report No 3-2022 by the Executive Director of Corporate Services providing members with an analysis of the 2021/2022 projected revenue outturn as at 30th November, 2021 monitored against the adjusted 2021/2022 Revenue Budget.

The Committee:-

(i) noted that the overall General Fund as at 30th November, 2021 was projecting an underspend of 6,457,000 against the adjusted 2021/2022 Revenue Budget;

(ii) noted the position on Covid-related expenditure and Covid funding, as set out in Appendix E and paragraph 3.1 of the report;

(iii) noted that the Housing Revenue Account as at 30th November, 2021 was projecting an underspend of 294,000 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; and

(vi) noted the current position on Leisure & Culture Dundee, as set out in paragraph 7.3 of the report, and confirmed the Councils ongoing financial support to offset the impact of Covid-19 on Leisure & Culture Dundee through to at least 31st March, 2023.

VI CAPITAL EXPENDITURE MONITORING 2021/2022

There was submitted Report No 1-2022 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.

VII DUNDEE CITY COUNCIL 2020/2021 - ACCOUNTS AND AUDIT

(a) AUDITED STATEMENT OF ACCOUNTS

(i) Dundee City Council

The above report was submitted and noted (Report No 14-2022).

(ii) Dundee City Council Charitable Trusts

The above report was submitted and noted (Report No 15-2022).

(iii) Lord Provost of Dundee Charity Fund

The above report was submitted and noted (Report No 16-2022).

(iv) The Dundee Trust

The above report was submitted and noted (Report No 17-2022).

(b) EXTERNAL AUDITORS REPORT

The above report was submitted and noted (Report No 18-2022).

(c) DUNDEE CITY COUNCIL 2020/2021 ACCOUNTS AND AUDIT - RESPONSE TO THE EXTERNAL AUDITORS ANNUAL AUDIT REPORT

There was submitted Report No 19-2022 by the Executive Director of Corporate Services in response to the external audit of Dundee City Council for the year to 31st March, 2021.

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 indicated they would issue an unqualified audit opinion on each of the 2020/2021 Annual Accounts; and

(ii) noted the 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 remotely on 20th September, 2021.

APPENDIX l

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 APOLOGIES

The Sub-Committee and Board noted that no apologies had been received.

III MINUTE OF PREVIOUS MEETING

The minute of meeting of 21st June, 2021 was submitted and approved.

IV RISK REGISTER

There was submitted Report No 239-2021 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 the Tayside Pension Fund which was updated on 16th June 2021, and noted the following changes to risk profile since the previous report:-

Risk 19: Failure to implement Environmental, Social & Corporate Governance (ESG) Policy and furthermore to address and limit exposure to climate change risk.

This risk is added to the register in recognition of the Funds commitment to ensure responsible stewardship. The cause of risk is the failure to understand the consequences of changing legislation, consumer demand, and taking appropriate action as a result of weak policy, lack of knowledge, lack of transparency or poor practices. Whilst there are robust risk control measures to mitigate, there remains a reasonable chance in terms of likelihood due to the number of investments in the portfolio, and the number of factors that could result in event.

V FUNDING STRATEGY STATEMENT 2021 (REVISED)

On a reference to Article XIV of the minute of meeting of this Committee of 21st June 2021, there was submitted Report No 240-2021 by the Executive Director of Corporate Services presenting a revised Funding Strategy Statement that had been updated to reflect the change in cessation valuation methodology for exiting employers.

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

VI PENSION ADMINISTRATION PERFORMANCE - QUARTERLY UPDATE TO 30TH JUNE 2021

There was submitted Report No 241-2021 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.

VII TAYSIDE PENSION FUND ACCOUNTS 2020/2021

(a) TAYSIDE PENSION FUND 2020/2021 - ACCOUNTS AND AUDIT

There was submitted Report No 242-2021 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, 2021. A copy of the External Auditor's Annual Audit Report (Report No 244-2021) and the 2020/2021 Audited Statement of Accounts for the Tayside Pension Fund (Report No 243‑2021) were also considered.

The Sub-Committee and Board noted the content of the External Auditors Annual Audit Report, in particular that Audit Scotland anticipated issuing an unqualified audit opinion.

(b) DRAFT AUDITED STATEMENT OF ACCOUNTS 2020/2021

There was submitted and noted by the Sub-Committee and Board Report No 243-2021 by the Executive Director of Corporate Services.

(c) EXTERNAL AUDITORS ANNUAL REPORT

There was submitted and noted by the Sub-Committee and Board Report No 244-2021 by Audit Scotland.

VIII ANNUAL TREASURY MANAGEMENT ACTIVITY 2020/2021

There was submitted Report No 245-2021 by the Executive Director of Corporate Services reviewing the Treasury Management activities for the period 1st April, 2020 to 31st March, 2021.

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.

IX TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 246-2021 reviewing the investment performance of the Funds Investment Managers for the quarter to 30th June, 2021. The report compared investment performance of the Fund 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 231-2021 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 30th June, 2021 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 UPDATE AS AT 30TH JUNE, 2021

There was submitted Report No 247-2021 by the Executive Director of Corporate Services reviewing the current funding level of the Fund as assessed by the Fund Actuary.

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

(d) SECURITIES LENDING SIX MONTH ACTIVITY TO 30TH JUNE, 2021

There was submitted Report No 248-2021 by the Executive Director of Corporate Services presenting an update on Securities Lending activity for the six month period ended 30th June, 2021.

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

X ASSESSMENT OF ENERGY SECTOR INVESTMENTS

The Sub-Committee and Board received an update and noted that a report would be submitted to a future meeting.

XI PRESENTATION

Clare Erskine-Murray and Tom Wright of 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.