G Taberner presented the Corporate Performance Report for Quarter 3 2021/22.

Highlights for the Quarter were noted as:

·       Reduction in sickness levels.

·       Fund value at a record £10.8 billion.

·       Improvements in pension administration performance measures.

·       Delays occurring on a small number of corporate objectives.

·       Underspends forecast against the budget – particularly staffing budgets due to 9% vacancy rate.

Section 3 of the report provided information on the progress being made on delivering the various strategies which formed the corporate planning framework.  A table provided updates in respect of developments during the quarter in delivering the programmes of work as well as updates in respect of activity that had taken place to deliver the ICT, HR and Equality strategies.

The key performance indicators for Pensions Administration were presented within the report.  It was noted that performance on priority cases had returned to previous levels as long-term sickness absence had reduced.  A more detailed report on performance of Pensions Administration was provided for each meeting of the Local Pension Board.

Members noted the quarter 3 financial performance and forecast outturn.  The forecast underspend for the year was £182k at quarter 3; the majority of this related to employee costs.  Detailed variances against budget for each of the service areas were contained within the report.

Members were reminded that the Authority had three earmarked reserves, The Corporate Strategy reserve, the ICT reserve and the Capital projects reserve.

A table within the report showed details of planned transfers from the reserves in 2021/22 which resulted in a total of £1,404k being transferred during the current financial year.

As there continued to be a need to ensure the balance of reserves was kept to an adequate level to meet resourcing requirements for specific corporate strategy objectives and for managing risk, it was proposed to transfer the remaining forecast underspend for 2021/22 into the reserves.

The report gave details and the rationale behind the proposal to recruit 1.0 FTE Senior Finance Officer.  The cost of adding this post would be £35k per annum.  At the budget had already been set for 2022/23, this would be finance in the first year by using some of the carried forward on the 2021/22 salaries budget.  From 2023/24 the cost would be included I the budget.

The Risk Register, was attached at Appendix A.  Further details and full commentary regarding the review of all the risks in February was provided.

In answer to a question form Cllr Nevett, J Bailey confirmed that a project team had been set up as planned with the aim of clearing backlog cases and he would be able to produce statistics at the next meeting to give assurance that the backlog was decreasing.

Members discussed the risk around adequate member training and development.  The results from the recent self-assessment would be used to develop a comprehensive training programme over the next 12 months, including actuarial training during the valuation year.  Members were invited to inform officers of any specific training requirements they may have.

Members also discussed the risk around climate change and that the likelihood that it would remain red for the foreseeable future.  It was noted that the Authority’s goal to reach net Zero by 2030 was extremely challenging.  There were ways of making the goal more achievable but these could challenge some of the Authority’s long-held beliefs.  These would be discussed during the next 12-15 months whilst reviewing the Authority’s’ Investment Strategy.

RESOLVED – That members:

i)       Approve the transfers to and from earmarked reserves as set out in the table in paragraph 4.53; currently forecast to amount to a net total transfer from reserves of £1,185,160.

ii)      Approve the addition of 1.0 FTE Senior Finance Officer to the staffing establishment in Finance & Corporate Services.