The Assistant Director – Resources presented the Q1 Corporate Performance Report which gave a summary view of overall performance of the Authority against its objectives, information on progress against the corporate strategy, key performance measures, financial monitoring, and an assessment of the risks to the delivery of the Corporate Strategy.

The Head of Finance and Performance highlighted the key issues regarding the budget at the end of Quarter 1 drawing attention to the overall underspend of £88k and breaking down how this had been achieved. It was explained that this trend of underspending was expected to continue into the next quarter allowing reserves to build for future capital projects subject to any unexpected expenditure.

Members asked for further information on the risk identified on the dependency on the software provider to deliver system upgrades to enable the team to implement the McCloud Remedy.

The Assistant Director – Pensions explained that delays to the provision of the software needed posed a significant reputational risk. It was explained that the software was critical to clearing the backlog of work and, that although all cases would be dealt with, delay put the Authority at risk of not being able to rectify cases in line with statutory time expectations. The Assistant Director – Pensions explained that SYPA was not the only authority dependent on the software and that pressure was being put on the software company, Civica, to avoid further delay in provision.

Members queried the Authority’s Investment Strategy to progress the Authority’s Net Zero Ambition noting that the report stated that achieving the overall goal was unlikely. It was asked whether, given the 156% funding level, now could be the time to look at this particular strategy to achieve the net zero goal including divesting from companies involved with fossil fuel and whether the ‘stable’ status of the strategy on the Strategic Risk Register in the report was appropriate or should be increasing and whether stranded assets should be on the register.

The Director responded that it was the highest rated risk on the Strategic Risk Register and that the score is based on reports from the actuaries and the broader impacts to the Authority’s assets and liabilities and, as part of corporate planning, there will be in depth risk assessment to reassess scores on the register. The Director explained that risks regarding stranded assets were contained within the broader climate change risk and fed into the investment decision making process by managers in individual funds.

Members questioned the status of the ‘Maintain the Authority’s cyber defences’ project when cyber security remained an ongoing and serious risk.

The Assistant Director – Resources explained that the status the project had was of being ‘on track for timescale’ rather than being completed. It was explained that this meant the Authority was keeping up to date with testing, accreditation, monitoring and training but that the Authority was aware that cyber security is a significant and ongoing risk and were keeping the protection level as high as possible.

RESOLVED: Members noted the report.