The Audit, Risk & Assurance Committee of the West Midlands Combined Authority (WMCA) met on Tuesday 15 September 2026 to review a range of financial and governance matters. The meeting's agenda included updates on the WMCA's financial position, internal audit activities, corporate risk management, and the oversight of the authority's arm's length companies.

Revised Annual Minimum Revenue Provision (MRP) Statement 2026-2027

The committee was scheduled to consider a revised Annual Minimum Revenue Provision (MRP) Statement for 2026-2027. The report detailed proposed amendments to the WMCA's MRP policy, aiming to ensure compliance with statutory guidance from the Ministry of Housing, Communities and Local Government (MHCLG) and reflect best practice. The revisions focused on clarifying the approach to calculating MRP for capital expenditure incurred before April 2008, expenditure capitalised under direction, capital loans for other purposes, and the reduction of MRP charges through capital receipts. The report recommended endorsing the revised statement for onward approval by the WMCA Board.

Internal Audit Charter

A review of the updated Internal Audit Charter for 2026/27 was scheduled for discussion. This charter defines the purpose, mandate, authority, organisational position, and reporting relationships of the Internal Audit function. Updates to the charter were designed to strengthen its alignment with Global Internal Audit Standards (GIAS) and current WMCA governance arrangements, including clearer terminology, updated governance structures, and enhanced authority and access provisions. The committee was asked to approve the charter and endorse the outlined mandate, authority, access rights, and reporting arrangements.

Internal Audit Annual Outturn Report 2025/26 & Update Report

The committee was set to receive the Internal Audit Outturn Report for 2025/26, confirming the completion of the annual risk-based plan. The report was expected to present the final Head of Internal Audit annual opinion, summarise work completed since the previous update, and detail the latest position on agreed management actions. The overall opinion for 2025/26 was anticipated to be Reasonable Assurance, reflecting a generally sound framework of governance, risk management, and internal control, with some identified areas for improvement. The report was also to provide an update on the progress of audits completed since July 2026, including reviews of the Disclosure and Barring Service (DBS) and the Wednesbury to Brierley Hill Metro Extension.

Information & Monitoring Arrangements of WMCA Arm's Length Companies Annual Update

An annual update on the information and monitoring arrangements for the WMCA's arm's length companies was scheduled. The report was intended to provide the committee with an overview of the WMCA's interests in various companies, including wholly owned entities, partnerships, and joint ventures. It was also set to outline the oversight arrangements, the responsibilities of the WMCA as owner/shareholder, and the duties of WMCA officers acting as company directors. The report aimed to inform the committee about the monitoring and control of these companies, ensuring their activities align with the WMCA's strategic objectives and that public funds are safeguarded.

Corporate Risk Update

The committee was scheduled to receive a quarterly update on the WMCA's principal corporate risks and strategic themes. This report was expected to detail how decisions made by the Corporate Services Group and Executive Board had influenced the current risk position. It was also to outline the next steps in embedding Enterprise Risk Management (ERM) across the WMCA, focusing on improving the visibility of strategic and emerging risks, clarifying ownership and accountability, and strengthening governance and assurance arrangements. The update was to highlight a new corporate risk related to geopolitical instability and its potential financial and capital programme impacts, and to classify the devolution of rail powers as a strategic theme.

Assurance Performance Report – Q1 2026/27 (April – June 2026)

The committee was to review the Assurance Performance Report for the first quarter of 2026/27. This report was intended to provide assurance that the WMCA is embedding its Single Assurance Framework (SAF), which supports project management capability. The report was expected to detail thematic programme assurance information from WMCA projects and programmes assured through the SAF, demonstrating compliance with devolved assurance standards. It was to highlight trends in business case assessments, risk and investment appraisals, change requests, and health checks, and to identify any risks associated with the assurance process, such as compressed review activity or delays in business case submissions.

Consideration of Private Internal Audit Reports

The agenda also included a private session for the consideration of Internal Audit reports that were likely to involve the disclosure of exempt information, as per the Local Government Act 1972.