The Audit and Standards Committee of North East Mayoral Combined Authority Council met on Tuesday 24 March 2026 to review the strategic internal audit plan, assess the effectiveness of the committee's arrangements, and discuss the authority's risk management framework. The meeting also covered updates on the integrated settlement, accounting policies, and the work programme for the upcoming year.

Internal Audit Charter Update and Strategic Internal Audit Plan 2026/27 to 2028/29

The committee was scheduled to receive an update on the Internal Audit Charter and review the proposed three-year Strategic Internal Audit Plan for 2026/27 to 2028/29. This plan, developed in conformance with Global Internal Audit Standards in the UK Public Sector (GIAS-UKPS), aims to focus resources on mitigating strategic risks and supporting the organisation's core functions. The plan is designed to be flexible and responsive to emerging risks and organisational changes. It outlines a programme of assurance and advisory activities, prioritising work that addresses strategic risks and compliance requirements.

Annual Review of Effectiveness of Audit and Standards Committee Arrangements

A self-assessment of the Audit and Standards Committee's effectiveness against good practice guidance from the Chartered Institute of Public Finance and Accountancy (CIPFA) was scheduled for review. The assessment indicated that the committee's arrangements were generally working well, with an overall score of 186 out of a possible 200, an improvement from the previous year. The report highlighted areas for potential improvement, including attendance at meetings and the process for evaluating member knowledge and training needs. The committee was asked to endorse the self-assessment, which would form the basis of its 2025/26 annual report to Cabinet.

Accounting Policies for Application in the 2025-26 Financial Statements

The committee was to review the accounting policies for the North East Combined Authority's (North East CA) 2025-26 Statement of Accounts. The report indicated that the material accounting policies from the 2024-25 financial year remained appropriate, with the exception of one policy that was no longer relevant. Changes to the CIPFA Code of Practice on Local Authority Accounting for 2025-26 were considered minor or not applicable to the North East CA. The committee was asked to approve the use of these policies for the upcoming financial statements.

Work Programme 2026/27

A proposed work programme for the Audit and Standards Committee for the 2026/27 municipal year was presented for agreement. The programme detailed known core business items, suggested reporting timings, and acknowledged the need for flexibility to address emerging issues. The committee was also informed that additional reports on ad-hoc items would be provided as they arose, in line with its terms of reference. The work programme aims to support the achievement of the North East CA's strategic missions by reviewing its governance, risk management, and control arrangements, and promoting high standards of conduct.

Integrated Settlement

An update was scheduled on the North East CA's preparations for the Integrated Settlement, which was due to commence in April 2026. This settlement provides a more flexible and outcomes-based approach to funding from the Government. The report detailed the progress made in negotiating an outcomes framework aligned with the North East CA's missions and the undertaking of a 'readiness programme' with the Ministry of Housing, Communities and Local Government (MHCLG). The North East CA was assessed as ready to manage and deliver the Integrated Settlement, with recommendations for improvement being addressed.

The North East Combined Authority Risk Management Framework

The committee was to consider proposed updates to the North East CA's Risk Management Framework. The report highlighted recent activities to strengthen the authority's risk management programme, including directorate and programme-level risk assessments and the exploration of technology-based solutions. Key proposed updates to the framework included a revised risk scoring scale, the adoption of a taxonomy of 13 risk categories aligned with the HMT Orange Book, and a five-level risk appetite scale. These changes aim to mitigate subjectivity in risk ratings, simplify reporting, and inform decision-making.

The North East CA Strategic Risk Review (6 monthly update)

A six-monthly update on the North East CA's strategic risks was presented, reflecting changes since the previous review. The Organisational Capacity risk score had increased due to the growing volume of activity, while the focus of the Integrated Settlement risk had shifted to delivery capacity. The Securing Powers and Funding risk was expanded to include the potential risk of not securing necessary powers. The committee was asked to comment on the current strategic risks, their scoring, and proposed management actions, with feedback to be shared with Cabinet.

Strategic Risk Deep Dive: Reputational Risk

As part of a series of 'deep dives' into strategic risks, the committee was scheduled to review Strategic Risk St011, relating to Reputational Risk. This deep dive aimed to provide the committee with an opportunity to examine the risk description, scoring, and proposed management actions in detail, ensuring that target risk scores are achievable and mitigating controls are effective.

Internal Audit Plan 2025/26 – Quarterly Update

The committee received an update on the progress of the 2025/26 internal audit plan. The report detailed the status of each engagement, including completed work and ongoing fieldwork. Summaries of completed engagements, such as Information Governance and Cyber Security, were provided, with some findings noted as confidential. The update confirmed that all planned activities were on track to inform the annual opinion to be presented in June 2026.