Issue - meetings

That the report be noted.

The Corporate Finance Manager introduced the report on the draft Clwyd Pension Fund Statement of Accounts 2018/19 which, following a change in regulations, were now separated from the Council’s Statement of Accounts.  As approval of the Pension Fund accounts had been delegated to the Clwyd Pension Fund Committee, the report was received for information only.

At its meeting on 12 June, the Clwyd Pension Fund Committee had received a detailed presentation on the accounts on which no significant issues had been raised.  The draft Annual Governance Statement (AGS) was also presented, which would be submitted with the audited accounts for approval in September.

In acknowledging the governance arrangements, Sally Ellis said it would be helpful to include in future reports a summary of any points raised by the Clwyd Pension Fund Committee.  When asked about the increase in ‘oversight and governance’ expenses, the Accountant said that these were due to early Actuarial work on the triennial valuation and additional project work on the flight path.

Sally Ellis sought assurance on whether the red risks in the AGS were being successfully mitigated.  The Deputy Head of the Pension Fund said that these were a reflection of the highest risks reported as part of a comprehensive risk register to the Clwyd Pension Fund Committee on a quarterly basis.

The Chief Executive said that some risks would remain red due to market volatility and the impact of adjusting to regulatory changes.  He spoke about work undertaken by the Clwyd Pension Fund Committee to add flexibility to the market investment strategy supported by internal and external professional advice.

On fund manager diversification, the Deputy Head clarified that no single manager could manage more than 30% of the Fund’s assets.  The current maximum holding by a single fund manager was 22.8% to manage the Liability Driven Investment (LDI) mandate which aimed to match the profile of Fund members and their liabilities as the Fund grew.  Such strategic decisions were subject to regular review by the Committee.

In acknowledging the role of the Clwyd Pension Fund Committee, Sally questioned how the Audit Committee could add value to the process.  The Chairman referred to the assurance provided by the Deputy Head and Accountant.

In response, the Chief Executive spoke about the high level of governance on the Fund and suggested that the points raised be referred back to the Clwyd Pension Fund Committee to satisfy itself with the explanations.

Councillor Woolley drew attention to a typographical error in the covering report.

The recommendation was moved by Councillor Johnson and seconded by Councillor Dunbobbin.

RESOLVED:

That the report be noted.