Miriam Adams, Interim Head of Pensions and Treasury, introduced the report on a review of internal control measures put in place by the fund managers that manage the Fund’s assets. The audit identified no significant changes in risk in the year to 31 March 2023 and the controls were approved by the external auditors.

The report sets out more details in relation to each of the fund managers and the controls they reported. A report from the London CIV in their capacity as investment manager which complies to the Standard is currently awaited.

One specific point that was examined was whether the Council’s ICT safeguards were appropriate. On current evidence there was no reason to conclude that the Council’s controls weren’t adequate in this regard.

During discussion Members asked about data management controls and were advised that all new team members must undergo relevant GDPR and similar training and their access must be signed off by the Head of Service. Access to third party systems was on a need-to-know basis.

In relation to how the Council could be confident in the monitoring data that was provided, it was explained that the Council had regular meetings to check and challenge and it was also possible to access systems to check the information that was provided was accurate.

RESOLVED

1.    To note the report.

2.    To note the current position for London CIV.

Ms Miriam Adams, Interim Head of Pensions and Treasury stated the report presented the findings of the review examining the adequacy of internal control measures in place by fund managers who hold the Fund’s assets in management. She said an independent accounting and auditing firm had been used for this purpose. Ms Adams said the review of these report and bridging letters had identified no significant changes to the internal control environment for the period of 1^st April 2022 to 31^st March 2023.

In response to comments and questions the following was noted:

·       In answer to if the team had enough resources to undertake reconciliations regularly, Ms Adams said this was a struggle at times. She said one administrative officer for reconciliations. She confirmed more information would be provided in the annual report coming back to the Board and Committee.

The Pensions Board RESOLVED to:

Note the recommendations made to the Pensions Committee who will consider this report at its meeting of 3rd July 2023, that:

The Pensions Committee is recommended to:

1.    Note the report contents; and

2.    Note that the current position for London CIV.