The Audit, Risk & Assurance Committee of the West Midlands Combined Authority met on Monday 27 April 2026 to review a range of reports concerning the authority's financial health, operational risks, and governance. Key discussions were scheduled to cover the external audit plan, internal audit updates, the draft annual governance statement, quarterly risk reporting, assurance performance, and health, safety, and wellbeing reports.

External Audit Plan 2025/26

The committee was scheduled to consider the External Audit Plan for the year ending 31 March 2026, presented by Grant Thornton. This plan outlines the scope and timing of the statutory audit of the West Midlands Combined Authority (WMCA) and its group financial statements. The audit will focus on forming an opinion on the financial statements and assessing whether the WMCA has sufficient arrangements in place for securing economy, efficiency, and effectiveness in its use of resources. Significant risks identified for the audit include management override of controls and the valuation of the gross pension liability. The interim external audit commenced in March 2026, with the final audit expected to conclude by November 2026.

Internal Audit Update Report

An update on Internal Audit activity since February 2026 was scheduled for discussion, outlining progress against the 2025/26 Internal Audit Plan. The report indicated that five core audits had been completed to final report stage, representing 72% completion of the plan, with the team on track to deliver the revised plan. Audits completed included reviews of Bus Reform Governance, Value Added Tax (VAT), Treasury Management, Sport England funding, and the Arts Council - Black Country Cultural Development Fund. The report also detailed changes to the Internal Audit Plan, including the deferral of the Subsidy Control Regime and IT Vulnerabilities audits to 2026/27, and the addition of a new audit project to address emerging assurance requirements related to major assurance reviews. Follow-up on previous audit recommendations was also to be discussed, with updates provided on the implementation status of actions related to Business Continuity Planning, Energy Efficiency Retrofit, Longbridge Park and Ride, and other projects.

Draft 2025/26 Annual Governance Statement

The committee was due to consider the draft Annual Governance Statement (AGS) for 2025/26. This statutory document explains the processes and procedures in place to enable the WMCA to carry out its functions effectively, as defined by the Chartered Institute for Public Finance and Accountancy (CIPFA). The AGS reviews the past year, highlights good governance practices, and identifies areas for focus in the coming year. It demonstrates compliance with the seven core principles of good governance outlined in the CIPFA and Solace framework. The committee was asked to provide comments on the draft statement, with authority delegated to the Chief Executive, in consultation with the Chair of the Audit, Risk & Assurance Committee, to make final amendments before publication alongside the Statement of Accounts.

Quarterly Risk Reporting

The committee was scheduled to receive an update on the Corporate Risk Register (CRR), which provides an overview of the most significant risks facing the WMCA. The CRR is reviewed quarterly by the Executive Board before being submitted to the Audit, Risk & Assurance Committee. This update was expected to highlight changes to the corporate risk profile, the direction of travel for key risks, and the mitigations in place. It was noted that the corporate risk profile remained stable, with no new corporate risks added and several existing risks reduced following the embedding of planned mitigations. One risk, Delivering transformation, had increased due to acknowledged resource and capacity challenges linked to organisational transformation. The report also outlined next steps for embedding Enterprise Risk Management (ERM) across the organisation.

Assurance Performance Report - Q4 2025/26

This report provided assurance that the WMCA continues to embed the Single Assurance Framework (SAF), which aims to improve project management capability. It detailed programme assurance information from WMCA projects funded through devolved investment, demonstrating compliance with devolved assurance standards. The report indicated that compliance with the WMCA SAF and associated processes is adequate, although some risks were flagged relating to compressed Assurance and Appraisal review activity and business case submission trends, particularly for the City Region Sustainable Transport Settlement (CRSTS) programme. The Ministry of Housing, Communities & Local Government (MHCLG) had approved the annual refresh of WMCA's SAF, confirming that assurance readiness conditions for the Integrated Settlement were met.

Health, Safety & Wellbeing Annual Report

The committee was scheduled to receive an annual overview of the WMCA's health, safety, and wellbeing (HSW) performance and assurance activity for 2025/26, the final year of the Health & Safety Strategy 2023–26. The report indicated that WMCA had maintained statutory compliance and delivered business-as-usual assurance activity, including maintaining its ISO 45001:2018 certification. Key cultural and organisational improvements were noted, such as strengthening Visible Felt Leadership (VFL) and introducing Safety Differently principles. The report also outlined priority improvement actions for 2026/27, including scaling VFL, strengthening governance and reporting, embedding psychological safety and wellbeing, and integrating HSW within the People & Culture Strategy. The committee was asked to endorse these future improvement priorities.