Decision details

Stephen Ross presented his Members Item which requested that the Board receive a report on how the situation with Capita is being monitored and what contingency plan is in place.  In addition, he requested that Capita’s pension services be appropriately rated on the Council’s risk register and managed accordingly.  It was requested that this should include the management of reputational risk (e.g. via an effective communications strategy with beneficiaries). 

The Assistant Chief Executive advised the Board that it was acknowledged that there were issues with pensions administration.  A Service Improvement Plan in place and details of that Plan would continue to be reported to the Board regularly for scrutiny.  In respect of having contingency plans in place should there be an issue with an external provider, the Board were advised that the Council already has plans in place and details of those arrangements would be reported to the Performance and Contract Management Committee on 27 February 2018.  This would include details of contingency plans in place in respect of all the Council’s contracted providers. 

In response to a question, the Assistant Chief Executive advised the Board that the recently reported issues with Capita had changed the status of the risk associated with the services that they provided.  Details of the updated risk would be included on the Council’s Strategic Risk Register details and be reported to the Performance and Contract Management Committee. 

In response to questions about the viability of external providers, the Assistant Chief Executive report that trigger points were continually monitored by the Commercial Team.  Some of the triggers points include levels debt ratios and banking covenants.  Triggers were usually monitored twice yearly, but had recently been reviewed in response in relation to the recent news about Capita.  The Board were advised that the triggers which would require the Council to act had not been breached.  A Board Member questioned whether income and dividend cover were triggers that were considered.  The Assistant Chief Executive undertook to request that the Commercial Director include this in the report to the Performance and Contract Management Committee.

RESOLVED that the Board be kept regularly advised of the situation relating to Capita and the potential impact on the Barnet Superannuation Scheme.