The Audit and Standards Committee of the North East Mayoral Strategic Authority met on Tuesday 15 September 2026 to receive updates on the internal and external audit plans, and to conduct a strategic risk review. Key discussions included the progress of the internal audit plan, the external audit progress report, and a deep dive into the strategic risk concerning the delivery of priority programmes and missions.

Internal Audit Plan 2026/27 - Quarterly Update

Ian Pattison, Chief Internal Auditor, provided an update on the 2026/27 Internal Audit Plan. While much of the planned work had not yet commenced, including crucial areas like treasury management, preparatory work was underway for several engagements. The committee noted that half a dozen recommendations from previous audits had not been fully implemented, though officers were making significant progress. Ian Pattison confirmed that the internal audit team was on track to provide an annual opinion by the year-end.

External Audit - Audit Progress Report

James Collins, Audit Director at Forvis Mazars, presented a verbal update on the external audit. The audit strategy and plan had been previously presented, and the accounts had been published in June. The audit had commenced, with the deadline for submission of approved accounts being January 2027. The external auditors were aiming to complete their work before Christmas, and were confident in meeting the deadline for the committee's January meeting. Eleanor Goodman, Head of Finance, expressed confidence that her team would provide the necessary information to the auditors in a timely manner, noting that the audit process was starting earlier than in the previous year.

Quarter 1 Strategic Risk Review 2026

The committee reviewed the North East MSA's strategic risks and opportunities. Mags Scott, Director of Finance and Investment, explained that the strategic risks are reviewed quarterly by the Senior Leadership Team and every six months by the Audit and Standards Committee and Cabinet. Daniel Adam, Senior Risk Manager, outlined the refreshed risk scoring scale and the concept of risk appetite.

Several key strategic risks were discussed:

• Organisational Capacity & Sustainability (ST006): This risk was deemed to be increasing due to sustained demand, programme growth, and national policy requirements. Mitigating actions include recruitment activities, workforce planning, and the implementation of new systems and technologies, such as AI co-pilot licences, and a new Microsoft 365 tenancy. The move to new offices in central Newcastle was also mentioned as a measure to improve collaboration and productivity.
• Engagement & Awareness (ST011): Formerly known as Reputation Risk, this risk focuses on ensuring the public understands the Mayoral Strategic Authority's role and impact. Controls include a communication strategy and supporting activities. Councillor Mark Wynn raised concerns that the Mayor's profile was being prioritised over that of the wider authority. Alan Rees, Director of Operations, stated that investments are jointly branded as North East Mayoral Strategic Authority and Kim McGuinness North East Mayor to reflect the partnership.
• Policy and Partnerships (ST009): This risk relates to changes in the political environment impacting clarity and decision-making. Alan Rees highlighted the ongoing rewiring of the state and close engagement with Number 10 North. Councillor Greg Stone inquired about reporting on the strategic partnership with the National Wealth Fund. Marcus Rees-Harris, Head of Tech and Transformation, confirmed that any significant borrowing decisions would go through the normal governance processes.
• Securing Powers and Funding to Deliver Objectives (ST010): This risk is decreasing, influenced by the devolution agenda. However, the potential for funding gaps, particularly for major transport objectives, was noted. The committee discussed the possibility of loan arrangements with investors like the National Wealth Fund to meet these gaps, with assurances that such decisions would undergo full governance scrutiny.

Strategic Risk Deep Dive - Delivery of Priority Programmes and Missions (ST014)

Chrissie Page, Head of Investment Programmes, led a deep dive into Strategic Risk ST014, which concerns the effective delivery of the MSA's priority programmes and interventions. This risk was identified as one of the most significant due to its direct link to the delivery of the MSA's missions and integrated settlement outcomes. The risk is currently rated as 'Yellow' (12), with a stable direction of travel and within the authority's risk appetite.

Controls in place include a robust evidence-led programme design process, experienced programme management resources, and close collaboration with delivery partners. A strengthened quarterly performance cycle, including a common reporting framework and enhanced forecasting, aims to provide more timely data and earlier identification of delivery risks. Regular engagement with the Ministry of Housing, Communities and Local Government (MHCLG) through a six-monthly programme board also provides oversight.

Councillor Andrew Eales raised a point about the risk appetite at a strategic level, suggesting it might be lower than for individual projects. Chrissie Page agreed to consider this feedback. The committee also discussed the new forecasting process and the richer performance data it would provide, with a focus on looking ahead rather than solely backwards. The discussion also touched upon how the failure of individual projects might lead to the materialisation of this strategic risk.

The committee also noted that the last two agenda items would be taken in private session.