The Audit, Risk & Assurance Committee of West Midlands Combined Authority Council was scheduled to discuss a range of financial and governance matters. Key topics included the external audit plan for 2025/26, an update on internal audit activities, the draft Annual Governance Statement for 2025/26, and quarterly risk reporting. The committee was also set to review assurance performance for the fourth quarter of 2025/26, receive an annual report on health, safety, and wellbeing, and consider private internal audit reports and an annual whistleblowing update.

West Midlands Combined Authority 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. 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. The interim external audit commenced in March 2026, with the final audit expected to conclude by early November 2026. Significant risks identified for the audit include management override of controls and the valuation of the gross pension liability. The planned audit fee for the WMCA audit is £179,301.

Internal Audit Update Report

An update on the work undertaken by Internal Audit since the previous report was scheduled for discussion. This report detailed progress against the 2025/26 Internal Audit Plan, highlighting key areas of focus, achievements, and any emerging risks or challenges. 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 within agreed timescales. The report also noted changes to the plan, including deferred and cancelled audits, and the addition of a new audit project to address emerging assurance requirements. The update included a follow-up on previous audit recommendations, with progress reported on areas such as Business Continuity Planning, Energy Efficiency Retrofit, and Longbridge Park and Ride.

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, records good governance demonstrated by the WMCA, and looks forward to areas requiring focus in the coming year. The statement demonstrates compliance with the seven core principles of good governance as set out in the CIPFA and Solace framework. The committee was asked to provide comments on the draft statement and delegate authority to the Chief Executive, in consultation with the Chair of the Audit, Risk & Assurance Committee, to finalise it for publication with 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 in achieving its objectives. This update was to inform the committee of changes to the corporate risk profile, the direction of travel for key risks, and the mitigations in place. Overall, the corporate risk profile was reported as stable, with no new corporate risks added and a reduction in some existing risks following the embedding of planned mitigations. One risk, Delivering transformation, had increased due to acknowledged capacity and capability challenges linked to organisational transformation. The report also outlined next steps for embedding Enterprise Risk Management (ERM) arrangements 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 supports improved project management capability. The report detailed thematic programme assurance information from WMCA projects assured through the SAF, demonstrating compliance with devolved assurance standards. Analysis confirmed that compliance with WMCA SAF processes and controls regarding submitted business cases and change requests was adequate. The report highlighted an increase in Business Case Assurance Reviews and Risk & Investment Appraisals, alongside a notable increase in Change Requests, particularly related to the City Region Sustainable Transport Settlement (CRSTS) programme. The report also confirmed that the SAF is being considered in future programme planning and 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. The external certification to ISO 45001:2018 was maintained, providing independent assurance of the Occupational Health & Safety Management System. The report also highlighted progress in cultural and organisational improvements, including strengthening Visible Felt Leadership (VFL) and embedding Safety Differently principles. Priority improvement actions for 2026/27 were set out, focusing on scaling VFL, strengthening governance and reporting, embedding psychological safety and wellbeing, and integrating HSW within the People & Culture Strategy.

Private Internal Audit Reports and Annual Whistleblowing Update

The committee was scheduled to consider private internal audit reports, which would be reviewed at agenda item 14. Additionally, an annual whistleblowing update was to be presented by Matthew Dean.