The Audit and Risk Management Committee's agenda for 12 January 2026 included a review of the committee's terms of reference, an update on risk management, and the internal audit charter. The committee was also scheduled to discuss the recruitment of external representatives and receive a mid-year treasury management review.

Annual Review of the Committee's Terms of Reference

The committee was scheduled to review its Terms of Reference, a process that occurs annually to ensure they remain relevant and effective. The report, prepared by the Town Clerk, was for decision and aimed to align the committee's remit with its statutory duties and business-enabling functions. Members were asked to consider any proposed changes and whether the frequency of meetings needed adjustment. The agreed terms of reference would be submitted to the Court of Common Council for approval.

Recruiting External Representatives to the Audit & Risk Management Committee

A report from the Chamberlain outlined a proposal for recruiting external representatives to the Audit & Risk Management Committee. The committee's membership includes three external representatives who do not have voting rights, and at least one must be present for the committee to be quorate. The report highlighted that there had been an ongoing vacant external seat and two unsuccessful recruitment attempts. The recommended approach, Option A, was to launch an open, rolling recruitment process with no set closing date, filling vacancies as suitable candidates applied. This would involve preliminary screening conversations before panel interviews and would be supported by the City Corporation's in-house recruitment service and a more proactive approach by officers in identifying potential candidates.

Risk Management Update

The committee was scheduled to receive an update on the City of London Corporation's risk management framework from the Chief Strategy Officer. The report indicated progress in implementing a new risk appetite approach, with most corporate risks now assigned appetite levels. The report also detailed the corporate and top red departmental risk registers, along with the risk appetite for corporate risks. Members were asked to note the report, the risk registers, and that the number of corporate and departmental red risks had remained stable since the previous update, with only one corporate risk still awaiting the setting of its risk appetite.

Internal Audit Charter

The committee was asked to approve the Internal Audit Charter, a mandatory requirement under the Global Internal Audit Standards. The Charter, prepared by the Group Chief Internal Auditor, defines the purpose, authority, responsibilities, and reporting structure of the Internal Audit function. It outlines the commitment to conforming to the Global Internal Audit Standards, the mandate for internal audit as per the Accounts and Audit Regulations 2015, and the authority granted to the function, including unrestricted access to records and personnel. The Charter also details the independence and objectivity of the function, its reporting relationships, and the responsibilities of the Group Chief Internal Auditor. The committee's oversight role in approving the Charter and reviewing the quality assurance and improvement programme was also highlighted.

Mid-Year Treasury Management Review 2025/26

A report from the Chamberlain provided a mid-year review of the Treasury Management Strategy Statement and Annual Investment Strategy for 2025/26. The review considered economic and market developments, particularly changes in interest rate expectations. It noted that while inflation had resurfaced, the Bank of England had made cuts to the Bank Rate, with further reductions anticipated. The report indicated that investment returns were expected to decrease, but capital values of bond investments would increase. As of 30 September 2025, the City had cash balances of £1,038.7m, with a projected reduction over the medium term due to the capital programme. The Corporation's priorities remained security and liquidity, ahead of yield, and officers did not recommend relaxing risk appetite. No approved counterparty limits were breached, and no liquidity concerns were experienced. The report also confirmed that no external borrowing had been entered into by City Fund and none was anticipated for the remainder of the financial year.

Committee Work Programme and Outstanding Actions

The committee was also scheduled to note its Work Programme and Outstanding Actions List. The Work Programme details anticipated agenda items for future meetings, while the Outstanding Actions List tracks progress on previously agreed actions.

Minutes of the Previous Meeting

The committee was asked to agree the public minutes and non-public summary of the previous meeting held on 17 November 2025.

Questions and Other Business

The agenda also included time for members to ask questions on matters relating to the work of the committee and for any other urgent business to be raised.

Exclusion of the Public

A motion was scheduled to be considered for the exclusion of the public from the meeting for specific items, on the grounds that they involved the likely disclosure of exempt information. This would be followed by the agreement of non-public minutes and a non-public appendix to the risk management update.