To receive apologies for absence.

The Treasurer reported that the Chairman was present by video link (in a non voting capacity) and was therefore unable to chair the meeting and the Vice-Chairman has sent their apologies.  Councillor G. Butler was therefore elected Chairman for the duration of the meeting.

Apologies for absence were received from Councillors Adrian Hardman, Lee Carter and Councillor Rae Evans joined the meeting remotely. 

To receive the minutes of the Joint Committee meeting held on 2^nd march 2021.

Copy attached marked 2.

RESOLVED:

That the minutes of the meeting held on 2^nd March 2021 be approved as a correct record.

To receive any question or petitions from the public, notice of which has been given in accordance with Procedure Rule 14.  The deadline for this meeting is 10.00 a.m. on 24^th Septmeber 2021.

None received.

Members are reminded that they must not participate in the discussion or voting on any matter in which they have a Disclosable Pecuniary Interest and should leave the room prior to the commencement of the debate.

None

The Director of West Mercia Energy Joint Committee will provide a verbal update in line with the West Mercia Energy Joint Committee Standing Orders.

The Treasurer reported that the Director of WME was unable to attend the meeting and it was therefore agreed to defer this update until a future meeting when the Director was present.

Report of the Treasurer for West Mercia Energy Joint Committee

Contact: James Walton (01743258915)

a)             That the Letter of Representation to be signed by the Chairman and submitted by the Treasurer be noted.

b)             That the finalised Statement of Accounts 2020/21 to be signed by the Chairman and the Treasurer be noted.

c)             That the Annual Governance Statement 2020/21 be noted.

Mr J. Walton, Treasurer (WME) presented the Letter of Representation, the Statement of Accounts 2020/21 and the Annual Governance Statement 2020/21 for the West Mercia Energy Joint Committee (copy attached to the signed minutes). 

a)             That the Letter of Representation to be signed by the Chairman and submitted by the Treasurer be noted.

b)             That the finalised Statement of Accounts 2020/21 to be signed by the Chairman and the Treasurer be noted.

c)             That the Annual Governance Statement 2020/21 be noted.

Report from the External Auditor for The West Mercia Energy Joint Committee

Report: John Fletcher, WR Partners -  jfletcher@wrpartners.co.uk

That the contents of the audit findings report presented by WR Partners be considered and endorsed, to date, noting that they are incomplete.

The Chairman welcomed External Auditors, John Fletcher (Partner) and Alex Riley (Audit Manager) from W R Partners to the meeting.

The External Auditors thanked Nigel Evans (Director WME) the team at West Mercia Energy for allowing them to carry out the audit free from restrictions.  It was reported that the only area of outstanding work, detailed on page 2 of the report was subsequent events work and how that linked into going concern.  A scheduled management meeting had been unable to take place due to illness and so it was anticipated that an audit report approval date of 28^th September, might be pushed back a couple of days, but it was not a concern.

In response to a question, John Fletcher outlined how materiality was calculated, explaining that income was used as a benchmark and that materiality for the WME accounts had been capped at £700,000.

The Committee considered and endorsed the findings that were before them noting that further conversations and work were needed meaning the report was incomplete.  It was agreed to discuss the reserve in more detail when the full management team were present. 

RESOLVED:

That the contents of the audit findings report presented by WR Partners be considered and endorsed, to date, noting that they are incomplete.

Report from the Head of Audit for The West Mercia Energy Joint Committee

Contact: Ceri Pilawski (01743257739)

1.            That performanceagainst the AuditPlan for the year ended 31 March 2021 be considered and endorsed.

2.           That the systemof governance, risk managementandinternal controlis operatingeffectivelyand canberelied upon when consideringthe AnnualGovernanceStatementfor2020/21 be considered and endorsed.

3.           The Head of Audit’sreasonableyear end opiniononWest Mercia Energy’s governance, risk managementandinternal control environmentfor2020/21 based onthe work undertaken and managementresponses received be endorsed.

Ceri Pilawski, Head of Internal Audit presented the report.

The Committee agreed that the team at West Mercia Energy had worked extremely well under very challenging conditions and should be congratulated on the positive outcome of the audit and they were pleased to note that the opinions given were favourable. The Committee requested that a vote of thanks to the Internal and External Audit Teams be recorded in the Minutes.

RESOLVED:

1.            That performanceagainst the AuditPlan for the year ended 31 March 2021 be considered and endorsed.

2.           That the systemof governance, risk managementandinternal controlis operatingeffectivelyand canberelied upon when consideringthe AnnualGovernanceStatementfor2020/21 be considered and endorsed.

3.           The Head of Audit’sreasonableyear end opiniononWest Mercia Energy’s governance, risk managementandinternal control environmentfor2020/21 based onthe work undertaken and managementresponses received be endorsed.

Report of the Treasurer for West Mercia Energy Joint Committee

Contact: James Walton (01743258915)

That the Joint Committee approve the deferral of the distribution of surplus until the next Joint Committee.

          The Treasurer presented the report which recommended that the distribution of surplus to the Member Authorities be deferred due to exceptional circumstances.  (copy attached to the signed minutes).

          The Treasurer provided context to the report and confirmed that there was no additional risk to the owning authorities from deferring this payment.   Members were supportive of the proposals to defer the payments, given the uncertainty within the market.  The Committee felt that although they were happy to defer the distribution of surplus to the next meeting, conversations with representatives of the business were needed sooner than February 2022. 

RESOLVED:

That the Joint Committee approve the deferral of the distribution of surplus until the next Joint Committee.

Councillor Kent abstained from voting.

Report of The Director of The West Mercia Energy Joint Committee

Contact: Nigel Evans (0333101 4353)

That consideration of this item be deferred to a future meeting.

In the absence of the Director of West Mercia Energy, the Committee agreed to defer consideration of the Risk Management Update.

It was suggested that in future the Risk Management Update should feature before the Distribution of Surplus agenda item.

RESOLVED:

That consideration of this item be deferred to a future meeting.

To consider a resolution under Section 100 (A) of the Local Government Act 1972 that the proceedings in relation to the following items shall not be conducted in public on the grounds that they involve the likely disclosure of exempt information as defined by the provisions of Schedule 12A of the Act.

RESOLVED:

That under Section 100(A)(A4) of the Local Government Act 1972, the public be excluded during the consideration of the following items of business on the grounds that they might involve the likely disclosure of exempt information as defined in Schedule 12(A) of the Act.

To approve the exempt Minutes of the meeting held on 2^nd March 2021.

RESOLVED:

That the Exempt Minutes of the meeting held on 2^nd March 2021 be approved as a correct record. 

Report of The Director of The West Mercia Energy Joint Committee

Contact: Nigel Evans (0333101 4353)

                           That recommendations B-F contained within the exempt report be approved.

In the absence of the Director, Gavin Owen, WME presented an exempt report, providing an update on the Business Plan and Trading Performance to date 2021/22.

          RESOLVED:  

          That recommendations B-F contained within the exempt report be approved.

Report of The Director of The West Mercia Energy Joint Committee

Contact: Nigel Evans (0333101 4353)

That consideration of the report be deferred until a future meeting.

RESOLVED:

That consideration of the report be deferred until a future meeting.

Report of The Director of The West Mercia Energy Joint Committee

Contact: Nigel Evans (0333101 4353)

That consideration of the report be deferred until a future meeting.

          RESOLVED:

That consideration of the report be deferred until a future meeting.

To confirm the date of the next meeting of the West Mercia Energy Joint Committee.  

It was noted that the next scheduled meeting would take place on Tuesday, 1^st March 2022.