The Audit and Risk Committee are scheduled to meet to discuss the strategic risks faced by the council, receive an update from internal audit, and review the committee's annual report. The committee will also receive an update from Grant Thornton, the council's external auditor. Some items will be discussed in private due to their confidential nature.

Strategic Risk Register

The committee will receive an update on the council's strategic risk register. The strategic risk register was last presented to the committee in June 2025. Since then, the register has been reviewed by risk owners and the council's Strategic Executive Board (SEB). Councillors will be made aware of changes to risks relating to climate change, city centre development projects, financial wellbeing and resilience, and unrest and disorder.

The report pack notes that at the June 2025 meeting, the committee requested further information on the assessment against the Consumer Standards – Social Housing Regulation Act risk. The risk owner is scheduled to attend the meeting to discuss the risks in more detail.

The report pack states that while the strategic risk register contains 35 risks, this:

should not be viewed negatively. Having a detailed risk register shows the Council are a mature and transparent organisation in terms of the way it manages their risks. Having an effective risk management process in place demonstrates strong governance.

Social Housing Regulation Act

The Audit and Risk Committee will receive an update on the City Housing strategic risk, 'Negative assessment against the Consumer Standards – Social Housing (Regulation) Act'.

According to the report pack, the Social Housing (Regulation) Act has redefined the legislative landscape, with the Regulator of Social Housing taking a more robust approach. A new regulatory regime includes publication of performance data in respect of Tenant Satisfaction Measures (TSMs), and a four-yearly inspection of council housing services.

The City of Wolverhampton Council owns approximately 21,500 council homes, which are managed by four managing agents: Bushbury Hill Estate Management Board (EMB), Dovecotes Tenant Management Organisation (TMO), New Park Village Tenant Management Co-operative (TMC), and Wolverhampton Homes (WH).

The report pack states that on 11 June 2025, following a period of self-assessment of regulatory compliance and external review of the assessment by Savills¹, a self-referral was made to the Regulator of Social Housing identifying areas where the council considers that it does not meet the expected outcomes of the Consumer Standards, particularly in respect of the Safety and Quality Standard, Tenant Influence and Accountability Standard and data quality and assurance. On 4 August 2025, the Regulator of Social Housing advised that the council is now subject to an inspection process, which is scheduled to occur between August and October. It is anticipated that the regulatory judgement will be published in February 2026.

The report pack also contains responses to questions raised by the Audit and Risk Committee on 23 June 2025, including a detailed timeline for actions recommended by Savills and Campbell Tickell², steps being taken to accelerate the data improvement programme, contingency plans in place if programme delivery is delayed, and assurance that the council and Wolverhampton Homes have the necessary governance, leadership capability, and capacity to manage the required improvements to housing compliance and standards.

Internal Audit Update

The committee will receive an update on the progress made against the 2025-2026 internal audit plan and information on recent work that has been completed.

The internal audit update report includes details of matters arising from audit work undertaken so far this year, which will feed into the overall opinion on the council's governance, risk management, and internal control processes in the Head of Internal Audit's annual internal audit report issued at the year end.

The report pack lists the audit reviews completed by the end of the first quarter of the current year, including:

• WV Active Leisure Centres – Financial Controls
• Private Sector Housing – Damp & Mould
• School Establishment Visits
  • Ashmore Park Nursery School
  • Bilston Nursery School
  • Eastfield Nursery School
  • Penn Fields School
  • Westacre Infants School
  • Wodensfield Primary School

The report pack also lists consultancy reviews where no assurance opinion has been provided:

• Agresso SaaS Implementation
• Senior Officer Emoluments
• Schools Utility Recharges

And Grant Certifications:

• Family Hub and Start for Life Programme

The report pack states that the Audit Services team members are representatives on the following boards and programmes to provide assurance around governance, risk management, and potential control issues:

• Pay Strategy
• Project Assurance Group
• City Learning Quarter Programme
• Agresso SaaS Migration Board
• Transforming Children's Board
• Transform Adult Social Care Programme
• Adult Eclipse Project Board
• School Compliance Board
• Resilience Board
• Health, Safety & Well-Being Board
• Financial Well-Being Strategy Board
• Fleet Management System Working Group
• Our Future Council Programme
• Omni-Channel Programme Board
• Strategic Waste Board
• Procurement Board
• Procurement of EMIS System
• Income Management System
• Income Collection Project
• Our Assets Programme

Audit and Risk Committee Annual Report 2024-2025

The committee will endorse the Audit and Risk Committee Annual Report 2024-2025, which summarises the main areas of work undertaken by the committee during 2024-2025. Once endorsed, the report will be presented to full council for approval in November 2025.

The report pack states that the purpose of the Audit and Risk Committee is to provide independent assurance on the adequacy of the risk management framework and the internal control environment. It provides an independent review of the governance, risk management and control frameworks and oversees the financial reporting and annual governance processes. It oversees internal audit and external audit, helping to ensure efficient and effective assurance arrangements are in place.

The report pack lists the key sources of assurance for the committee:

• The work of external auditors, Grant Thornton
• The work of internal auditors
• Risk Management
• Governance
• A key role in helping to prevent and detect fraud
• The effectiveness of the committee

Update from Grant Thornton 2024-2025

The committee will receive an update from Grant Thornton on their audit progress for 2024-2025.

The report pack states that the scope of the audit is set in accordance with the Code and International Standards on Auditing (ISAs) (UK). The auditors are responsible for forming and expressing an opinion on the council and group's financial statements and consider whether the council has sufficient arrangements in place for securing economy, efficiency and effectiveness in the use of resources.

The report pack includes Grant Thornton's audit progress report for 2024-2025, which provides an update on progress in delivering their responsibilities as the council's external auditors.

The report pack also includes information on local audit reform, including the establishment of a new Local Audit Office (LAO) with effect from 1 April 2026.

The report pack lists the audit deliverables planned for 2024/25:

• Audit Plan
• Audit Progress Report and Sector Updates
• Audit Findings Report
• Auditors Report
• Auditor's Annual Report
• Teachers Pensions Scheme – certification
• Housing Benefit Subsidy – certification
• Pooling of housing capital receipts - certification