The Audit, Standards and Risk Committee convened on Thursday, 9 July 2026, to elect a Chair and Vice-Chair, review the health and safety performance, discuss bus franchising updates, and examine the capital programme assurance. The meeting also covered the Treasury Outturn Report, internal and external audit plans, and the Adult Skills Quality and Compliance Report, with a significant portion dedicated to reviewing the financial statements and risk management framework.

Election of Chair and Vice-Chair

Councillor Mike Levery was elected as the new Chair of the Audit, Standards and Risk Committee, with David Phillips appointed as Vice-Chair.

Health and Safety Update

Deb Kilvington, the incoming Head of Health, Safety and Wellbeing, presented a positive health and safety update for the period January to March 2026. Key highlights included zero accidents or near misses involving SYMCA staff and contractors. Crime and disorder incidents saw a slight reduction, and vandalism instances fell significantly, by almost 50%. Several locations, including Meadowhall and Sheffield interchanges, reported reductions in health and safety incidents involving the public. All fire risk assessments and emergency evacuation arrangements were reported as current. Wellbeing initiatives were noted as having strong foundations, with managers actively engaging with colleagues. Questions were raised regarding the reduction in vandalism, with an increased security presence cited as a key factor. Concerns were also raised about slip, trip, and fall incidents at Barnsley Interchange, with plans for new floor surfaces and improved signage in development.

Bus Franchising Update

Francesca Drydale, Programme Delivery Lead for Bus Franchising, provided an update on the programme's progress. Key milestones achieved include operator fleet procurement and depot purchases, with a focus on electrification. The programme is on track to deliver the first franchised service by September 2027. Operator procurement has seen strong market interest, with 19 submissions from 10 operators, leading to six shortlisted bidders for each franchise lot. The Invitation to Tender (ITT) went live on 16 June and will close on 11 September. In terms of fleet, 390 buses (304 double-deckers and 86 single-deckers) will be 100% electrified, with manufacturing delivery timelines starting in late 2026 and delivery planned for mid-2027. All six depots have been acquired and lease-back arrangements are in place, with electrification infrastructure work already underway. No significant risks were identified that would prevent the programme from going live in 2027.

Assurance of the Capital Programme

Laurie Thomas, Director of Programme Delivery, presented an overview of the capital programme, highlighting its scale, with over 200 projects in delivery and 90 in development. Funding is received through various channels, including the Integrated Settlement, successful funding bids, and allocations based on formulas. Funding often arrives at the beginning of the financial year, not always aligning with the planned spend profile. The presentation detailed the process for projects entering the pipeline, including collaboration with partners and the use of revenue resource for project feasibility. External delivery challenges such as inflationary pressures, partner capacity, contractor availability, statutory undertaker dependencies, and public consultation were also discussed. Performance management is conducted quarterly using the Virto system, with a Performance Board providing oversight. Improvement actions are underway, including enhancing forecasting and integrating risk and performance information reporting.

Treasury Outturn Report

Ian Bagshaw, Chief Accountant, presented the Treasury Outturn Report for 2025/26. The report detailed the actual prudential and treasury indicators, noting that Treasury Management Investment income for the MCA exceeded the budget due to higher than forecast investment balances and returns. The Police Fund also significantly exceeded its budget due to an upfront grant payment. The MCA maintained an under-borrowed position, and officers will continue to monitor market conditions for opportune external borrowing. A recommendation was made to increase the limits on long-term investments to £444 million. The report also clarified the distinction between MCA and Police Fund treasury management arrangements and highlighted the different spending profiles of each.

Internal Audit Plan Progress Report

RSM presented the Internal Audit Plan Progress Report for 2025/26 and 2026/27. For the 2025/26 plan, three reports were finalised: Follow Up of Previous Internal Audit Management Actions, SYFTL Business Continuity and Disaster Recovery, and Procurement. All audits for the 2025/26 plan were complete. For the 2026/27 plan, two reports were finalised: Investment Zone Governance and Decision Making, and SYFTL Key Financial Controls – Balance Sheet/General Ledger. Fieldwork dates for the remaining audits were agreed, and the plan was reported to be well underway.

Internal Audit Reports

RSM presented several internal audit reports:

• Procurement: The audit found a defined procurement framework was in place but identified areas for strengthening controls. Two medium-priority actions were agreed concerning compliance monitoring (including conflicts of interest and contract award notifications) and ethical considerations in procurement. Six low-priority actions were also agreed, relating to updating policies, retaining due diligence evidence, contract register limitations, training, and documenting value-for-money assessments for waivers. The overall opinion was Reasonable Assurance .
• Investment Zone Governance and Decision Making: The review confirmed a well-defined assessment process and strong monitoring of approved proposals. Seven low-priority actions were raised, primarily concerning documentation of policies and procedures, and transparency in decision-making. Three advisory points were also noted. Management had agreed to implement all ten actions by 30 July 2026. The overall opinion was Reasonable Assurance .
• SYFTL Key Financial Controls – Balance Sheet/General Ledger: This audit concluded with a Green opinion, the highest possible, indicating substantial assurance. Only one low-priority action was identified, relating to documenting the general ledger and balance sheet closure processes for consistency.
• SYFTL Business Continuity and Disaster Recovery: The audit provided Reasonable Assurance, with two medium-priority actions concerning the Service Continuity Plan's activation criteria and the need for regular testing. Six low-priority actions were also identified, mainly related to documenting and updating policies and procedures. Management agreed to implement all eight actions by 30 September 2026.
• Follow-Up Audit: This report indicated reasonable progress had been made in implementing agreed management actions. Of the 15 actions reviewed (seven medium, eight low), 11 were fully implemented, three were partially implemented, and one was superseded. No actions were found to be completely unimplemented.

Internal Audit Annual Report and Head of Internal Audit Opinion

RSM presented the Internal Audit Annual Report for 2025/26, which summarised all audit work performed. The overall opinion was Amber, indicating an adequate and effective control framework, with areas for improvement identified. Of the nine assurance opinions given, three were Substantial, four were Reasonable, and two were Partial. All raised actions had been agreed with management. No high-priority actions were raised during the year.

Adult Skills Quality and Compliance Report

Rebecca Brooks, the Monitoring Officer, presented a report on the Adult Skills function, noting its annual funding of around £50 million. The report detailed an investigation into a boot camp provider following allegations of fraudulent activity. Initial inquiries found no evidence of fraud, but the contract was terminated in April 2026 due to performance issues. SYMCA sought to claw back £40,553.90 in funding, but this may be impacted by the provider's insolvency proceedings. The report also mentioned ongoing investigatory activity in exempt appendices. Councillor Jason Charity raised concerns about the accuracy of information provided regarding self-employed learners and interviews, requesting evidence. The committee agreed to move into a private session to discuss these matters further.

Final Statement of Accounts

Ian Bagshaw, Chief Accountant, presented the draft unaudited Statement of Accounts for 2025/26. He explained the consolidation of SYMCA, the Chief Constable's accounts, and South Yorkshire Future Trams Limited (SYFTL). The accounts were published on 30 June 2026, meeting the statutory deadline. The external audit by KPMG was due to commence shortly. Councillor Jamie Baggaley questioned the remuneration figures, noting a discrepancy in the number of officers paid over £130,000 compared to the previous year. Officers agreed to investigate this. Paul Schofield requested an update to a map of South Yorkshire to reflect the creation of East Midlands Combined Authorities.

Draft External Audit Plan 2025/26

Ian Bagshaw presented the indicative external audit plan for 2025/26. Key areas of focus include rebuilding assurance following prior disclaimed audit opinions, with a target to remove the disclaimed opinion for 2025/26. Materiality levels were set at £23 million for the group and £21.5 million for the parent entity. Significant risks identified include management override of controls, completeness and accuracy of legal provisions (Police and Reform focus), valuation of post-retirement benefit obligations (Chief Constable focus), and valuation of land and buildings (Police and Reform focus). Other audit risks include post-retirement benefit obligations for the MCA's local government pension scheme and historic non-compliance with MRP. The audit approach for subsidiaries, South Yorkshire Future Trams Limited and the Chief Constable, was also outlined.

Update from JIAC

Steve Wragg, Chair of the Joint Independent Audit Committee (JIAC), provided a verbal update. The committee expressed concern about a trend of governance issues highlighted in internal audit reports and requested a risk be added to the risk register, with the Chief Constable and Mayor to be made aware. Financial sustainability remains a long-term challenge, with a projected deficit of £40 million by 2030-31. Police are using priority-based budgeting, with tranche three focusing on redeployment. Staff costs, resource allocation, and income generation are critical. The year-end outturn showed a £3.1 million underspend, attributed to higher treasury income and strategic underspends. An upcoming issue concerns funding for the Ogre Eve and Grooming Gang enquiries. Regarding IT resilience, 12 legacy systems were identified with documentation gaps, and issues with the disaster recovery plan were noted. There was also repeated slippage in audit actions due to unrealistic timetables. The IT shared service review with Humberside Police is nearing delivery, with staffing implications being the remaining issue. Case file preparation for the Crown Prosecution Service remains below comparative forces, but new IT systems are expected to improve this. Cyber crime risk is under review with new procedures and training implemented. Performance management assurance is strong, with most areas rated green.

Risk Monitoring Report

Claire James, Head of Governance, presented the Risk Management Dashboard for July 2026. The overall strategic risk profile remained broadly stable, with nine strategic risks monitored. The highest areas of risk exposure continue to be cyber security, organisational capacity, policy and devolution uncertainty, regulatory compliance, and the reliability of major transport programmes. The risks with the greatest interconnectedness are cyber security and insufficient capacity to deliver. Public service delivery and compliance and corporate performance have the highest concentration of medium, high, and high residual risks. Notable risks at Level 2 include business continuity planning, declining public transport patronage, and data and information governance. The report highlighted a maturing risk management approach, with emerging issues being formally incorporated into the risk register. Common risk drivers remain resource constraints, financial pressures, and uncertainty from political, economic, and regulatory change. Work is underway to strengthen assurance arrangements, including establishing a fraud risk working group and developing a more integrated corporate assurance framework.

Transport Risk Working Group Update

Paul Schofield, Chair of the Transport Risk Working Group, reported on the group's discussions. Key transport directorate strategic risks were reviewed, including bus franchising and SYFTL's business continuity. Bus journeys had fallen by a further 5.2% in 2025-26, down to 60 million, with lower footfall in city centres potentially contributing. Tram patronage was down 6% year-on-year. The financial effect of these works was estimated at around £1 million in lost revenue for the year. Competitors like Uber and on-demand travel were noted as impacting tram usage. Analysis suggested a loyal commuter base for trams, with declines seen in non-regular travellers. The issue of tram signalling failures, where tram signals and road traffic signals occasionally conflict, was discussed. This technical problem, potentially caused by outdated tram signalling equipment, has been under investigation for eight years. Mitigation measures are in place, including tram drivers exercising additional caution. The group highlighted lessons for organisational design and future procurement, emphasizing the need for better collaboration between multiple parties involved. The report also noted that SYFTL has added seven further risks to its register, bringing the total to 83.

Revised Code of Corporate Governance

Claire James, Head of Governance, presented a comprehensively revised Local Code of Corporate Governance. The Code aligns with the CIPFA/SOLACE Delivering Good Governance in Local Government Framework 2016 and its 2025 addendum, reflecting SYMCA's evolved operating model and governance maturity. The revised Code embeds stronger expectations around assurance, accountability, and outcomes delivery, and strengthens internal control, risk management, and transparency. The Committee was asked to note the revised Code and provide any feedback.

Annual Governance Statement

Claire James presented the draft Annual Governance Statement (AGS) for 2025/26. The AGS concluded that governance arrangements were robust, resilient, and effective, supporting lawful and transparent decision-making. It highlighted strengthened financial governance, improved alignment between strategy and resources, and active audit and scrutiny functions. The report noted that placeholders for the Head of Internal Audit opinion and the 2026/27 Governance Improvement Plan would be updated before final publication.

Governance Improvement Plan 26/27

Claire James presented the proposed Governance Improvement Plan for 2026/27, structured around seven priority themes: Contract & Commercial Governance, Modern Corporate Governance Processes & Assurance, Ethical Culture & Leadership, Governance of Complex Partnerships, Fraud Prevention Maturity, Data, Digital & AI Governance, and Embedding EDIB in Governance. The plan focuses on governance outcomes and high-risk areas, with progress to be monitored through periodic thematic updates and potential deep dives.

Breach of Controls Report

Gareth Sutton, Executive Director of Resources and Investment, reported that, to his knowledge, there were no breaches of controls to report to the committee.

Work Plan 26/27

Claire James presented the rolling work plan for 2026/27 and sought feedback from the committee. Councillor Jamie Baggaley suggested adding an item to review delegated authorities and the assurance surrounding their adherence. Officers agreed to incorporate this into the work plan, potentially alongside the proposed revisions to the financial regulations.

Issues for Escalation

The Chair noted that issues for escalation had been covered throughout the meeting.

Final Statement of Accounts

Ian Bagshaw, Chief Accountant, presented the draft unaudited Statement of Accounts for 2025/26. He explained the consolidation of the Police Fund and SYFTL accounts. Councillor Jamie Baggaley raised a question regarding officers' remuneration figures, noting a discrepancy in the number of individuals paid over £130,000 compared to the previous year. Mr Bagshaw agreed to investigate this. Paul Schofield requested an update to a map of South Yorkshire to reflect the creation of East Midlands Combined Authorities. Steve Wragg noted that police accounts would be reviewed separately by the Joint Independent Audit Committee. The committee agreed to note the report.

Draft External Audit Plan 25/26

Ian Bagshaw presented the indicative external audit plan for 2025/26, prepared by KPMG. The plan highlighted the focus on rebuilding assurance following prior disclaimed audit opinions. Significant risks identified included management override of controls, valuation of pensions liabilities, valuation of land and buildings, and completeness of legal provisions. The audit approach for subsidiaries, SYFTL and the Chief Constable, was also outlined. A minor typo in the group materiality figure was noted and will be corrected.

Update from JIAC

Steve Wragg, Chair of the Joint Independent Audit Committee (JIAC), provided a verbal update. The committee expressed concern about a trend of governance issues identified in internal audit reports and requested a risk be added to the risk register, with the Chief Constable and Mayor to be informed. Financial sustainability remains a long-term challenge, with a projected deficit of £40 million by 2030-31. Police are using priority-based budgeting, with tranche three focusing on redeployment. Staff costs, resource allocation, and income generation are critical. The year-end outturn showed a £3.1 million underspend, attributed to higher treasury income and strategic underspends. An upcoming issue concerns funding for the Ogre Eve and Grooming Gang enquiries. Regarding IT resilience, 12 legacy systems were identified with documentation gaps, and issues with the disaster recovery plan were noted. There was also repeated slippage in audit actions due to unrealistic timetables. The IT shared service review with Humberside Police is nearing delivery, with staffing implications being the remaining issue. Case file preparation for the Crown Prosecution Service remains below comparative forces, but new IT systems are expected to improve this. Cyber crime risk is under review with new procedures and training implemented. Performance management assurance is strong, with most areas rated green.

Risk Monitoring Report

Claire James, Head of Governance, presented the Risk Management Dashboard for July 2026. The overall strategic risk profile remained broadly stable, with nine strategic risks monitored. The highest areas of risk exposure continue to be cyber security, organisational capacity, policy and devolution uncertainty, regulatory compliance, and the reliability of major transport programmes. The risks with the greatest interconnectedness are cyber security and insufficient capacity to deliver. Public service delivery and compliance and corporate performance have the highest concentration of medium, high, and high residual risks. Notable risks at Level 2 include business continuity planning, declining public transport patronage, and data and information governance. The report highlighted a maturing risk management approach, with emerging issues being formally incorporated into the risk register. Common risk drivers remain resource constraints, financial pressures, and uncertainty from political, economic, and regulatory change. Work is underway to strengthen assurance arrangements, including establishing a fraud risk working group and developing a more integrated corporate assurance framework.

Transport Risk Working Group Update

Paul Schofield, Chair of the Transport Risk Working Group, reported on the group's discussions. Key transport directorate strategic risks were reviewed, including bus franchising and SYFTL's business continuity. Bus journeys had fallen by a further 5.2% in 2025-26, down to 60 million, with lower footfall in city centres potentially contributing. Tram patronage was down 6% year-on-year. The financial effect of these works was estimated at around £1 million in lost revenue for the year. Competitors like Uber and on-demand travel were noted as impacting tram usage. Analysis suggested a loyal commuter base for trams, with declines seen in non-regular travellers. The issue of tram signalling failures, where tram signals and road traffic signals occasionally conflict, was discussed. This technical problem, potentially caused by outdated tram signalling equipment, has been under investigation for eight years. Mitigation measures are in place, including tram drivers exercising additional caution. The group highlighted lessons for organisational design and future procurement, emphasizing the need for better collaboration between multiple parties involved. The report also noted that SYFTL has added seven further risks to its register, bringing the total to 83.

Revised Code of Corporate Governance

Claire James, Head of Governance, presented a comprehensively revised Local Code of Corporate Governance. The Code aligns with the CIPFA/SOLACE Delivering Good Governance in Local Government Framework 2016 and its 2025 addendum, reflecting SYMCA's evolved operating model and governance maturity. The revised Code embeds stronger expectations around assurance, accountability, and outcomes delivery, and strengthens internal control, risk management, and transparency. The Committee was asked to note the revised Code and provide any further observations.

Annual Governance Statement

Claire James presented the draft Annual Governance Statement (AGS) for 2025/26. The AGS concluded that governance arrangements were robust, resilient, and effective, supporting lawful and transparent decision-making. It highlighted strengthened financial governance, improved alignment between strategy and resources, and active audit and scrutiny functions. The report noted that placeholders for the Head of Internal Audit opinion and the 2026/27 Governance Improvement Plan would be updated before final publication. The Committee was asked to note the draft AGS and the process undertaken.

Governance Improvement Plan 26/27

Claire James presented the proposed Governance Improvement Plan for 2026/27, structured around seven priority themes: Contract & Commercial Governance, Modern Corporate Governance Processes & Assurance, Ethical Culture & Leadership, Governance of Complex Partnerships, Fraud Prevention Maturity, Data, Digital & AI Governance, and Embedding EDIB in Governance. The plan focuses on governance outcomes and high-risk areas, with progress to be monitored through periodic thematic updates and potential deep dives.

Breach of Controls Report

Gareth Sutton, Executive Director of Resources and Investment, reported that, to his knowledge, there were no breaches of controls to report to the committee.

Work Plan 26/27

Claire James presented the rolling work plan for 2026/27 and sought feedback. Councillor Jamie Baggaley suggested adding an item to review delegated authorities and the assurance surrounding their adherence. Officers agreed to incorporate this into the work plan, potentially alongside the proposed revisions to the financial regulations.

Issues for Escalation

The Chair noted that issues for escalation had been covered throughout the meeting.

The meeting concluded by agreeing to note the reports presented and move to the next item.