The Audit, Standards and Risk Committee of South Yorkshire Mayoral Combined Authority met on Thursday, 19 March 2026, to discuss the Assurance Framework, Treasury Management Strategy, and updates on Bus Franchising and the Corporate Transformation Programme. Key decisions included noting the revised Assurance Framework for the forthcoming financial year and endorsing the 2026/27 Treasury Management Strategy.

Assurance Framework

The committee received an update on the revised Assurance Framework for the upcoming financial year. This framework is a crucial condition for accessing devolved funding over the next four years, ensuring rigorous due diligence and appropriate use of funds. The framework has been updated to reflect changes in governance, appraisal processes, and outcome-based assurance, including the introduction of a new outcomes framework covering skills, transport, housing, and infrastructure. Minor factual corrections will be made to the draft before it is submitted to the MCA Board and subsequently to the Government for approval.

Treasury Management Strategy

The committee reviewed the 2026/27 Treasury Management Strategy, which outlines the arrangements for borrowing, investment, and cashflow management for both the MCA and the Police Fund. The strategy complies with the CIPFA Treasury Management and Prudential Codes and includes updated borrowing strategies, prudential indicators, a Minimum Revenue Provision Policy, and an Annual Investment Strategy. A typographical point regarding the £10 million intra-group loan facility to SYFTL was noted, and it was confirmed that the final document would clarify whether this figure represents a cumulative or maximum limit. The committee endorsed the strategy, including the granting of delegated authority to the Executive Director of Resources and Investment to utilise capital flexibilities and the continuation of the intra-group loan facility to SYFTL.

Bus Franchising Update

An update was provided on the progress of the Bus Franchising Programme, highlighting that preparations for the next stages of procurement are underway, with a clear view established for the network's operation from day one. £33.4 million in funding has been secured for the purchase of 126 electric buses. Communications and engagement activities have moved into active delivery, and work with operators is ongoing. The public launch of new buses has taken place, and the development of the fleet strategy is progressing. The estimated delivery date for the new buses is July 2027, subject to component availability. Information on the number of charging points required at each depot is still being determined.

Corporate Transformation Programme Update

The committee received an update on the development of the Corporate Transformation Programme, which aims to address significant capacity pressures and prepare SYMCA for future changes. The programme will adopt a coherent, organisation-wide approach to manage ongoing and anticipated developments, focusing on cultural change, systems, and processes. The committee was assured that the programme seeks to move the organisation from incremental change to a planned and prioritised model. The next steps involve recruiting a Programme Manager and senior leadership support to establish governance and delivery arrangements.

Internal Audit Strategy and Plan

The committee considered the proposed Internal Audit Strategy and Plan for 2026/27, which includes 16 audits, four of which are specifically for SYFTL. The plan is risk-driven, covering areas such as cybersecurity, regulatory compliance, adult skills, and bus franchising. Members sought clarification on presentational points and the inclusion of policing and reform activity within RSM's audit remit, which was explained as reflecting SYMCA's statutory governance responsibilities for policing functions.

Internal Audit Reports

Three internal audit reports were received concerning the Digital Strategy, SYFTL Health and Safety, and Data Quality for the Adult Skills Fund. The Digital Strategy audit resulted in a partial assurance opinion with eight medium-priority actions agreed, primarily focused on embedding the strategy and strengthening governance. The SYFTL Health and Safety audit identified several areas for improvement, including procedural documentation, training records, inspections, and incident reporting, leading to seven medium and one low-priority action. The Data Quality for the Adult Skills Fund audit found effective controls and processes in place, resulting in a substantial assurance opinion with no actions raised.

Risk Monitoring Report

The Risk Monitoring Report and updated March 2026 Risk Dashboard were presented, indicating that the overall strategic risk profile remains broadly stable, with six risks above appetite. Enhancements to the dashboard include trend indicators and a PESTLE analysis to support horizon scanning. Amendments were made to the risk register following member feedback, including updates to health and safety and business continuity risks. Minor presentational issues were noted. The report highlighted that insufficient capacity to deliver is a systemic issue across the business, with the Local Government Association estimating SYMCA to be operating at half its required size.

Annual Governance Review Progress

An update was provided on the progress of the Annual Governance Review for 2025/26. Work is underway to refresh the Code of Corporate Governance and prepare the draft Annual Governance Statement. The review will continue over the coming months, with a full draft to be shared with members before presentation to the MCA Board AGM. An outstanding action regarding clarifying arrangements for the review with the Chief Constable on the policing side will be addressed in the draft Annual Governance Statement.

Governance Improvement Plan

An update on the progress of the 2025/26 Governance Improvement Plan was presented, showing steady progress across most actions, with several areas becoming embedded in business-as-usual activity. The Governance Improvement Plan for 2026/27 will need to be aligned with the Integrated Settlement Improvement Plan and the Corporate Transformation Programme to ensure a coherent approach. Some actions have revised timelines due to external dependencies, but plans are in place for their completion in early 2026/27.

Rolling Work Plan

The Committee reviewed the Work Plan for 2025/26–2026/27. Updates on Bus Franchising and Doncaster Sheffield Airport were agreed to be added to the forward plan. A minor typo was noted and corrected on page 319.

Other Matters

Councillor Phillip Lofts, Chair of the Audit, Standards and Risk Committee, expressed his enjoyment of his time on the committee and noted the brilliant progress being made by the MCA. He wished members well for the future, acknowledging the upcoming local elections.

The meeting also included restricted items concerning an investigation update on The Sheffield College and an update on Doncaster Sheffield Airport, which were discussed in the absence of the public and press. A verbal update on transport risk and oversight issues was also provided.