The Audit and Standards Committee received updates on internal and external audit progress, and conducted a strategic risk review. The committee was assured that external audit work was on track for the year ending March 2026, and that internal audit was progressing according to its plan. A significant portion of the meeting was dedicated to a deep dive into the strategic risk of Delivery of Priority Programmes and Missions, with detailed discussion on its description, scoring, and proposed management actions.

Internal Audit Plan 2026/27 - Quarterly Update

Councillor Ian Patterson, Chief Internal Auditor, provided an update on the 2026/27 Internal Audit Plan. He confirmed that progress was being made on various engagements, including the National Fraud Initiative and Local Transport Plan certification. Some engagements, such as Data and Digital Strategy and Workforce planning, were yet to commence but were scheduled for the coming months. Mr. Patterson also reported on the implementation of internal audit recommendations, noting that out of sixteen high and medium-priority recommendations made in 2025/26, five were fully implemented, five were not yet due, and revised target dates had been agreed for the remaining six.

External Audit - Audit Progress Report

James Collins and Naser Alkobir from Forvis Mazars, the external auditors, presented their Audit Progress Report for the year ending 31 March 2026. They confirmed that the audit had commenced and, while still in its early stages, there were no changes to the planned approach outlined in the Audit Strategy Memorandum. The auditors indicated that they had reviewed the published accounts and had not identified any matters requiring a change to their planned audit approach. The deadline for the submission of approved accounts is the end of January 2027, and the audit is on track to be completed ahead of this, with work aiming to be finished before Christmas.

Quarter 1 Strategic Risk Review 2026

The committee reviewed the North East MSA's strategic risks and opportunities for the first quarter of 2026. Mags Scott, Director of Finance and Investment, explained that these risks are reviewed quarterly by the Senior Leadership Team (SLT) and every six months by the Audit and Standards Committee and Cabinet. The review incorporated feedback from previous discussions and updated risk scoring based on a refreshed risk management framework. Key updates included an increase in the risk rating for Organisational Capacity & Sustainability due to sustained demand and capacity pressures, and a decrease in the risk direction for Securing powers and funding to deliver objectives due to the strengthening of the devolution agenda. Two new strategic risks, Cyber Security and Mayoral Safety, were also introduced, with further details provided in a non-public annex. The committee was asked to consider and comment on these risks, with their feedback to be shared with Cabinet.

Strategic Risk Deep Dive - Delivery of Priority Programmes and Missions

This session focused on a detailed examination of Strategic Risk St014, Delivery of Priority Programmes and Missions. This risk was identified as one of the MSA's highest and was introduced following the retirement of the legacy Delivery of Integrated Settlement risk, with the aim of capturing a broader range of delivery challenges. The report outlined the risk description, scoring, and proposed management actions, including the implementation of a comprehensive programme plan aligned with the MHCLG's readiness framework, dedicated programme management resources, and the embedding of the MSA's Performance Management Framework. The committee was asked to review and comment on the proposed management actions and target risk scores to ensure they were appropriate and achievable within the MSA's agreed risk appetite. The discussions highlighted the importance of robust programme management, clear objectives, and effective oversight to mitigate the risk of failing to achieve agreed outcomes.