Issue - meetings

To provide Committee Members with the Clwyd Pension Fund’s draft Annual Report and Accounts for approval,and to make Members aware of the response to the 2020/21 Audit Enquiries letter.

(a)  The Committee considered the Fund’s draft Annual Report for 2020/21, including the draft Statement of Accounts and agreed on the amendment in relation to the exit cap

(b)  The Committee noted the Audit Enquiries letter and response.

            Mr Vaughan noted that the annual report needs to be produced by 1 December each year and as such, the draft was presented for consideration. He highlighted the following key points from the annual report:

-       The report covered the year 2020-2021 where the impact of the COVID-19 outbreak dominated.

-       The investments returned 7.1% p.a. over the three years to 31 March 2021 compared to a benchmark of 7.7% p.a.

-       There had been increasing focus on carbon foot printing and responsible investment priorities. More details were on page 83.

-       The administration team completed c30,000 member cases during the year. The team have also been working on improving data quality, KPI’s, continuing the roll-out of iConnect, the GMP project and the impact of the McCloud remedy. More details were on page 57.

-       Total contributions for the year from members and employees were c£85 million with benefits and other payments to members around £83 million. Total management expenses paid by the Fund were £22 million. In addition, the net return on investments was c£469 million. Overall, the closing net assets of the scheme at 2020/21 was £2.226 billion.

-       To summarise, the Fund’s financial position had improved over the duration of the year and the Fund continued to deliver a high quality service to members and employers.

            Mr Vaughan explained that the Annual Report which includes the accounts needs to be audited and authorised by the end of November to comply with Regulations. It was unlikely that the audit would be completed in time to bring a fully audited Annual Report to the next Committee meeting on 10^th November for authorisation.  It was therefore proposed that there would be an update at that meeting and agreement of any further changes before the end of November would be delegated to the Chair of the Committee and Flintshire County Council’s Section 151 Officer.

Mrs Phoenix added that despite the audit team being unable to start the audit until October, she was confident that Audit Wales would meet the December deadline. However she confirmed that due to the late start, the audit team are unlikely to sign off the accounts before the next Committee on 10 November, however a verbal update on the progress of the audit would be provided.

Mr Everett thanked the team for the preparation of the report. However, he raised his concerns regarding the lateness of the audit. Regarding final minor adjustments to the accounts, Mr Everett supported the proposed delegations should there be a need.

            On page 82, Mr Hibbert asked for clarification on the exit cap regulations in respect of the Welsh Government. Mr Middleman noted that the outcomes of the discussions on the exit cap are awaited and he will update the Committee at the next meeting. Mr Hibbert was concerned about the lack of reference to the Welsh Government approach in the annual report in this context. Mr Everett agreed and Mr Vaughan said that they would add in extra wording  ...  view the full minutes text for item 14