The West Mercia Energy Joint Committee met on Friday, 27 March 2026, approving the external audit plan for 2025/26 and endorsing the internal audit annual report for the same period. The committee also approved the draft Anti-Slavery and Human Trafficking Statement for 2025/26 and endorsed the proposed internal audit strategic plan for 2026/27.

External Audit Plan 2025/26

The Joint Committee approved the draft audit plan for 2025/26 presented by WR Partners, and agreed to commission WR Partners to undertake the audit in accordance with this plan. The audit plan, detailed in the Audit Service Plan 2026, outlines the scope of the audit, identified risks, and audit responses. The fee for the 2025/26 audit is £15,950, a 3% increase from the previous year. The audit will focus on the statutory financial statements and will be conducted in accordance with International Standards on Auditing (UK). Key risks identified include fraud, management override of controls, and going concern considerations.

Internal Audit Annual Report 2025/26

The committee endorsed the Internal Audit Annual Report for 2025/26, which summarised the work undertaken by Internal Audit. The report concluded that West Mercia Energy's governance, risk management, and internal control processes are sound and operating effectively, resulting in a substantial assurance opinion from the Chief Audit Executive. This is the highest level of assurance available and reflects a strong control environment. The report detailed audits conducted in areas such as finance, debtors, procurement, IT, and corporate governance, noting that no adverse audit opinions were issued. A total of seven recommendations were made across the five audit areas reviewed, with management action plans in place to address them. The report also highlighted consistently positive feedback from customer satisfaction surveys, with 100% of respondents rating various aspects of the audit service as excellent or good.

Internal Audit Strategic Plan 2026/27

The Joint Committee endorsed the proposed programme of audits for 2026/27, as detailed in the Internal Audit Plan 2026/27. The plan, developed in consultation with management and aligned with West Mercia Energy's risk register, includes 22 days of audit work. Key audit areas for the upcoming year include procurement, debtors, finance, IT, and corporate governance and risk management. The plan also incorporates flexibility to address emerging risks and includes time for follow-up on previous recommendations and audit management.

Anti-Slavery and Human Trafficking Statement 2025/26

The committee approved the draft WME Transparency Statement for 2025/26 and delegated authority to the Director to finalise and publish it in accordance with section 54 of the Modern Slavery Act 2015. The statement, attached as MSA Statement 25/26, outlines the steps West Mercia Energy has taken to ensure that modern slavery and human trafficking are not occurring within its business and supply chains. These steps include monitoring adherence to the Anti-Slavery and Human Trafficking Policy, ensuring supplier compliance, incorporating compliance with the Act into procurement evaluation criteria, and conducting risk awareness training for staff. Further training is planned for the upcoming year.

Risk Management Update

The Joint Committee approved the WME Risk Management Strategy, attached as Risk Management Strategy March 26, and accepted the position outlined in the Risk Management Update March 26 report. The report indicated that the majority of the seventy-one identified risks are operational and have been effectively mitigated. One medium risk remains, concerning potential breaches of capital at risk levels due to market volatility. A previously identified medium risk related to the loss of business due to central government initiatives has been downgraded following improved engagement with the Department for Education. The committee noted the proactive approach to risk management, with the risk register being used as a live management tool.

Annual Business Plan and Budget 2026/27 and Energy Governance, Accountability, Risk and Reporting Policy

The committee approved recommendations contained within exempt reports concerning the Annual Business Plan and Budget for 2026/27, and the Energy Governance, Accountability, Risk and Reporting Policy.