Agenda item

Officers introduced the Internal Audit Report. Internal Audit had carried out an assessment of the effectiveness of the Pensions Committee, and the report was the culmination of work conducted by the Internal Audit team during August and September, aiming to evaluate the efficiency of the Pensions Committee.

Officers expressed that the audit's overall conclusion was a positive assurance opinion of reasonable assurance, aligning with pre-established expectations. However, it was noted that the outcome was one level down from the highest achievable rating, which was termed "substantial."

There were two medium-level issues and one low-level concern identified. These findings primarily pointed out deficiencies in controls related to training, self-assessment procedures, and Members' comprehension of technical terminology. The audit highlighted the presence of adequate provisions for training, although gaps in the completion of training were identified during the testing phase. This was partially attributed to a new Member joining the Pensions Committee. Additionally, at the time of testing, the absence of implemented self-assessment mechanisms was observed. However, plans were noted to introduce these assessments in the near future.

The Chair of the Pensions Board expressed interest in exploring how the Committee could swiftly address the issues regarding technical terminology comprehension and the implementation of self-assessment measures. In response, differences between the Committee's self-assessment protocols and those of the Pensions Board were noted.It was emphasised that while similarities existed, distinct roles played by these groups necessitated tailored approaches for each. Plans were noted to create a customised assessment tool specific to the Committee's needs.

Members acknowledged the challenges faced by a Committee primarily comprised of new Members. The Chair suggested refraining from the implementation of the recommendation to incorporate an experienced independent member. Members advocated for allowing the Committee time to adapt, grow in confidence, and undergo further training before considering such a step. The Chair was happy to approve all other recommendations. The idea of postponing the inclusion of an experienced independent member was given support, concurring that the Committee needed time to evolve and build confidence.

Members drew attention to the substantial workload they faced in preparing for meetings and suggested the possibility of earlier distribution of the agenda to afford Members more time for in-depth review and comprehension. The Chair suggested that this could be looked at, even if it meant only part of the agenda was distributed earlier.

Additionally, plans were noted about creating a condensed handbook/ resource guide to aid Members in understanding essential concepts. Members further proposed the establishment of a glossary or reference point to support them.Officers noted that efforts were underway to develop a concise handbook offering key information to assist in comprehension.

The Committee collectively agreed to accept the recommendations from the audit report. However, they chose to delay the implementation of incorporating an experienced independent member, aiming to afford themselves additional time for growth, knowledge enhancement, and effective contributions before potentially introducing an experienced independent member.

The Chair expressed gratitude to the internal audit team for their meticulous evaluation and insightful contributions towards enhancing the effectiveness of the Committee.

RESOLVED: That the Pensions Committee:

1)    Noted the Internal Audit report; and

2)    Considered the implementation of suggested recommendations for the risks highlighted in the report