To receive apologies for absence.

        None received.

To approve the minutes of the Joint Committee meeting held on 22^nd March 2024.

RESOLVED:

That the Minutes of the West Mercia Energy Joint Committee held on 22nd March 2024 be approved as a correct record. 

To receive any question from the public, notice of which has been given in accordance with Procedure Rule 14.  The deadline for this meeting is 12.00 p.m. on Monday 16th September 2024.

        No public questions had been received.

Members are reminded that they must declare their disclosable pecuniary interests and other registrable or non-registrable interests in any matter being considered at the meeting as set out in Appendix B of the Members’ Code of Conduct and consider if they should leave the room prior to the item being considered. Further advice can be sought from the Monitoring Officer in advance of the meeting.

None declared.

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 Director confirmed that there were no entries to report.

Report of Treasurer

Contact: James Walton

That the finalised Statement of Accounts 2023/24 to be signed by the Chairman and the Treasurer.

 That the Annual Governance Statement 2023/24 be noted.

James Walton, Treasurer (WME) presented the Statement of Accounts 2023/24 and the Annual Governance Statement 2023/24 and provided an overview of the financial performance of West Mercia Energy, highlighting significant profitability, an increased turnover and a strong balance sheet.

RESOLVED:

1.     That the finalised Statement of Accounts 2023/24 to be signed by the Chairman and the Treasurer.

2.     That the Annual Governance Statement 2023/24 be noted.

Report of the Director of West Mercia Energy.

Contact: Nigel Evans

That the contents of the audit findings report presented by WR Partners be considered and endorsed.

Jo Pugh, Head of Finance and Billing, WME introduced the report which set out the External Audit Findings for 2023/24.

Alex Riley, External Auditor, W R Partners highlighted the key areas of the Audit Findings Memorandum confirming a clean audit opinion and stated that there had been no issues arising from the audit process.

RESOLVED:

That the contents of the audit findings report presented by WR Partners be considered and endorsed.

Report of Internal Audit

Contact: Barry Hanson

That the performance against the Audit Plan for the year ended 31 March 2024 be endorsed.

That it be noted that the system of governance, risk management and internal control operating effectively and can be relied upon when considering the Annual Governance Statement for 2023/24.

That the Chief Audit Executive’s substantial year end opinion on West Mercia Energy’s governance, risk management and internal control environment for 2023/24 based on the work undertaken and management responses received be endorsed.

Barry Hanson, Head of Policy and Governance, Internal Audit presented the report which provided a summary of Internal Audit’s work for 2023/24. He reported that four good assurance opinions had been given in respect of the finance, debtors, procurement, corporate governance and risk management systems and a reasonable assurance opinion was provided in respect of the IT Strategy. It was added that a total of six recommendations had been made over the five audit areas reviewed in the year with one significant issue highlighted relating to the IT Strategy.

In response to a query from a member regarding the debtors system it was stated that this would be followed up as part of the 2024/25 audit programme.

RESOLVED:

1. That the performance against the Audit Plan for the year ended 31 March 2024 be endorsed.

2. That it be noted that the system of governance, risk management and internal control operating effectively and can be relied upon when considering the Annual Governance Statement for 2023/24.

3. That the Chief Audit Executive’s substantial year end opinion on West Mercia Energy’s governance, risk management and internal control environment for 2023/24 based on the work undertaken and management responses received be endorsed.

Report of Treasurer

Contact: James Walton

That the retention of accumulated surplus of £1.805 million be approved.

That the distribution of accumulated surplus of £2.438 million, in accordance with the provisions of the Joint Agreement be approved.

The Treasurer presented the report which recommended the level of distribution of surplus held on 31 March 2024 to the Member Authorities.

RESOLVED:

1. That the retention of accumulated surplus of £1.805 million be approved.

2. That the distribution of accumulated surplus of £2.438 million, in accordance with the provisions of the Joint Agreement be approved.

Report of the Director of West Mercia Energy

Contact: Nigel Evans

That the medium risks presented be endorsed.

Nigel Evans, Director WME, presented the report which provided an update on risk management noting that the risk register was reviewed formally twice a year. It was reported that following the current review two risks previously considered as medium had been downgraded to low and the following four risks had been categorized as medium:

•   The volatility in the energy markets leading to uncompetitive prices.

•   Breaching of the Capital of Risk from trading activity.

•   Risk relating to Central Government policy or regulation.

•   Dealing with suppliers that have ownership or investment in Russia or Belarus.

In response to questions from members Nigel Evans explained that WME’s trading strategy had been developed over a number of years following initial work with consultants and he was aware of financial concerns in the education sector.

RESOLVED:

That the medium risks presented be endorsed.

Report of the Director of West Mercia Energy

Contact: Nigel Evans

That the updated WME Standing Orders be approved.

Nigel Evans, Director WME, presented the report which set out the changes required to the Standing Orders in light of the new Procurement Act 2023 which was due to come into effect in February 2025. 

RESOLVED:

That the updated WME Standing Orders be approved.

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 22nd March 2024.

RESOLVED:

That the exempt minutes of the meeting held on 22nd March 2024 be approved.

Exempt Report of the Director of West Mercia Energy

Contact: Nigel Evans

That the recommendations contained within the exempt report be approved.

Nigel Evans, Director, WME presented an exempt report, providing an update on the Business Plan and Trading Performance to date 2024/25.

RESOLVED:

That the recommendations contained within the exempt report be approved.

Exempt Report of the Director of West Mercia Energy

Contact: Nigel Evans

That the recommendations contained within the exempt report be approved.

Nigel Evans, Director, WME presented an exempt report, providing an update on the progress of WME in developing suitable support products and services for customers as they look to achieve their net zero targets.

RESOLVED:

That the recommendations contained within the exempt report be approved.

To discuss and agree the date of the next meeting.

The next meeting would take place in March 2025.  Date to be confirmed.