The Audit and Governance Committee of Cambridgeshire and Peterborough Combined Authority is scheduled to convene on Thursday, 12 November 2026. The meeting's agenda includes a comprehensive review of the authority's financial statements, audit reports, and governance frameworks. Key discussions are expected to centre on the provisional audit results for the Cambridgeshire and Peterborough Combined Authority, the audited statement of accounts for 2025/26, and the annual governance statement.

External Audit: Cambridgeshire and Peterborough Combined Authority Provisional Audit Results Report

The committee is scheduled to receive the Provisional Audit Results Report from the external auditor, Ernst & Young LLP. This report will summarise the findings from the 2025/26 annual audit of the authority. It is expected to detail conclusions arising from the audit of the financial statements for the year ended 31 March 2026, and provide an update on the progress in rebuilding audit assurance following previous disclaimed opinions. The report indicates that an unqualified opinion is anticipated by 2027/28. The committee will be presented with the provisional audit opinion, which is subject to amendment following final internal review and sign-off. The report also notes that work in relation to the authority's Value for Money arrangements is complete, with no matters identified requiring reporting by exception concerning significant weaknesses in financial sustainability, governance, or economy, efficiency, and effectiveness.

Audited Statement of Accounts and Annual Governance Statement 2025/26

The committee is scheduled to review the audited accounts and the Annual Governance Statement for the financial year 2025/26. This item will involve the committee reviewing the audited statement of accounts, subject to the finalisation of closing procedures. Recommendations include reviewing and agreeing the Annual Governance Statement 2025/26, approving the audited Statement of Accounts 2025/26, and authorising the Chair of the Audit and Governance Committee to sign off any immaterial changes required to the Statement of Accounts and Annual Governance Statement prior to publication. The report highlights that following comments from EY, one paragraph in the Annual Governance Statement has been updated to more explicitly state that no material governance weaknesses were identified in the year. It also clarifies that the qualified opinion being issued does not indicate any identified shortcomings or inaccuracies in the Combined Authority's accounts, nor any undue delay to the draft accounts being available for audit.

Internal Audit - Progress Report

A progress report from the Internal Auditors is scheduled to be presented to the committee. This report will provide an update on the work undertaken in relation to the 2025/26 Internal Audit Plan, including the finalisation of reports on the delivery of the Skills Strategy, Key Financial Controls (Budget Setting, Forecasting, and Financial Performance), and a Follow-Up review. The report will also detail the progress against the 2026/27 Internal Audit Plan, including finalised reports on Data Quality and Performance Management, Peterborough Station Quarter, and AI Governance, with three further reports issued in draft.

Updates to Constitution

The committee is scheduled to receive a report seeking its views on proposed updates to the Constitution. These proposals have been considered by a working group established by the committee. The report outlines potential amendments to the Terms of Reference for the Transport Committee, Audit and Governance Committee, and Funding Committee. It also details proposed changes to Chapter 4 (Functions and Responsibilities), Chapter 9 (Contract Procedure Rules), Chapter 17 (Officer Schemes of Delegation), Chapter 18 (Annex 7 – Complaints Procedure), and Chapter 19 (Single Assurance Framework). The aim of these updates is to ensure the Constitution remains effective and up-to-date, reflecting legislative changes, organisational developments, and best practice.

Code of Corporate Governance and Framework - Annual Review

The committee is scheduled to consider the revised Corporate Governance Code and Framework. This document serves as a public statement detailing how the Cambridgeshire and Peterborough Combined Authority fulfils the principles of good governance. The review, undertaken by officers, has resulted in a revised draft of the Code, incorporating updates to align with the May 2025 addendum to the CIPFA and SOLACE publication Delivering Good Governance in Local Government. The committee's views are sought on these proposed changes, with a view to making recommendations to the Combined Authority Board for adoption.

Single Assurance Framework Annual Review 2026

The committee will consider the outcome of the 2026 annual review of the Single Assurance Framework (SAF). This review has identified 47 proposed amendments, with three key changes requiring Board decision: the introduction of a proportionate approval route for additional funding for existing business-as-usual activities, clarification of requirements for Outline and Full Business Cases, and alignment of business case requirements with updated HM Treasury guidance. The report also details corrections and editorial amendments to the SAF and its associated templates. The proposed changes aim to strengthen governance, accountability, and value for money by enhancing the clarity and efficiency of assurance processes.

Corporate Risk Report and Deep Dive (Resilience)

The committee is scheduled to review the Corporate Risk Register, Dashboard, and Heatmap for October 2026. A deep dive will be undertaken into the strategic risk concerning resilience, specifically focusing on the region's environment, infrastructure, water management, and energy supply. The report will provide context, an overview of the risk, progress made, the effectiveness of controls, and planned mitigating actions. The committee will also consider and comment on the revised Risk Appetite Statement.

2026/27 Treasury Management Mid-Year Report

A mid-year report on treasury management performance against the prudential and treasury indicators included in the approved Treasury and Capital Strategies for 2026/27 will be presented. The report indicates no breaches of the agreed indicators during the financial year to date. It highlights a significant favourable variance in the financing requirement and debt due to a delay in capital expenditure related to bus franchising, leading to an anticipated overachievement in treasury investment income. Benchmarking against other public bodies suggests the Combined Authority benefits from higher interest rates due to its ability to lend a higher proportion of funds for longer periods while maintaining similar credit quality.

Standing Items - Updates and Comments

The committee will receive updates on several standing items: Fraud Prevention, Health and Safety, Local Government Reorganisation, and an update from the Overview and Scrutiny Bus Working Group.

Work Programme

The committee will review and note the draft work programme for the Audit and Governance Committee for the remainder of the 2026/27 Municipal Year. Members will have the opportunity to provide comments and suggest items for future meetings. The report also notes changes to the committee meeting schedule in December and January to accommodate a planned period of Mayoral Paternity leave.

Exclusion of the Press and Public

The committee will determine whether the press and public should be excluded from the meeting for the discussion of specific items that may involve the disclosure of exempt information, as defined in the Local Government Act 1972.