The Audit, Standards and Risk Committee of South Yorkshire Mayoral Combined Authority met on Thursday, 8 October 2026. The meeting covered a wide range of topics, including health and safety updates, risk monitoring, transport patronage trends, financial regulations, and bus franchising. Key decisions included the noting of the health and safety update, the approval of the revised Anti-Fraud & Corruption Policy, and the noting of progress against the Governance Improvement Plan.

Health and Safety Update

Deb Kilvington, Head of Health, Safety and Wellbeing, presented an update on health and safety activity for the first quarter of 2026, covering April to June. She reported no accidents, incidents, or near misses involving SYMCA employees or contractors during this period. Across the transport estate, anti-social behaviour remains a significant challenge, though no new safety trends were identified. Significant progress has been made in strengthening organisational health and safety governance, including the review of Display Screen Equipment (DSE) assessments, revised corporate risk assessment templates, and support for the bus franchising programme.

For SuperTram and SYFTL, there was a positive reduction in overall incidents, with total reported incidents decreasing by 8.8%. However, near-miss reporting increased, which was viewed positively as an indicator of improved reporting culture and workforce engagement. The report noted that while overall incident levels are reducing, areas such as vandalism, passenger behaviour, and operational events require continued attention.

During the discussion, Councillor Dave Pagman raised concerns about potential under-reporting of incidents in Sheffield, and Matt Davis, Director of Transport Operations, explained that an investigation was underway with the interchange team to address this. He also mentioned a new initiative to capture near-miss reporting. Councillor Pagman also queried inconsistencies in the reported numbers, which Deb Kilvington acknowledged as an error in reporting that would be rectified.

Paul Schofield raised concerns about paragraph 2.1, which detailed signals passed at danger and multi-car derailments. He requested more narrative to understand the risk posed by these incidents. Matt Davis clarified that the multi-car incidents involved stationary vehicles being lifted onto rails and were not passenger-carrying.

Steve Wragg raised concerns about the accuracy of tables within the report, which were acknowledged as data errors that would be corrected in a reissued report. Gareth Sutton confirmed that a high-level group was looking into signalling issues and would provide a report to the committee.

Risk Monitoring Report

Claire James, Head of Governance, presented the Risk Monitoring Report, indicating that the corporate risk profile remained relatively stable, though the operating environment was challenging, with most strategic risks remaining above appetite. Two new strategic risks were added: Scale and Pace of Change and Police Fund, reflecting increasing demands and financial pressures. The highest scoring strategic risks remain cyber security threats, insufficient capacity to deliver health and safety, and reduction in Supertram reliability.

At Level 2, the greatest concentration of higher-scoring risks are in public service delivery, compliance, and corporate performance. Notable new risks include statutory compliance with FOI requests, national police reform, local economic shocks, corporate transformation delivery, and historic mine workings affecting Supertram infrastructure.

Claire James also noted that resource constraints remain the single largest driver of risk, followed by financial pressure and uncertainty of change. Seven of the nine common risk drivers have increased since the last reporting cycle.

Questions were raised by Jeremy, who asked about the progress on Freedom of Information (FOI) requests and reports to the ICO. Claire James explained that a 72% increase in requests had been seen, but new resources were being brought in, and 95% of requests were being responded to on time.

Dave Phillips raised concerns about residual risks being significantly above target levels, particularly for insufficient capacity and statutory compliance. He questioned whether the council was prepared to accept a higher level of risk due to capacity constraints. He also inquired about the inclusion of Artificial Intelligence (AI) in the risk profile, given its increasing sophistication in scams. Claire James confirmed that AI and AI governance is a risk, and that a new Head of Cyber Security, Catherine Marshall, has been appointed to bring more rigour to this area. Paul Schofield raised concerns about hybrid warfare and whether risk scoring should be adjusted to reflect this. Claire James agreed to look into this for horizon scanning. Steve Wragg questioned whether the target score for cyber risk could ever be met, given that actions are often reactive. The committee agreed to note the report and its recommendations.

Transport Patronage Trends Update

Mark Cowling, Assistant Director Data and Analytics Transformational Change, and Matt Davis, Director of Public Transport Operations, presented an update on transport patronage trends. They reported a long-term decline in bus ridership across South Yorkshire, which is lower than in the early 1980s. This decline is attributed to multiple complex factors, not solely COVID-19. A positive trend was noted in ridership among children and young people, largely driven by free travel initiatives in Barnsley. Tram patronage has also been in decline, although a recent positive period was noted before issues with network capacity arose.

The presentation highlighted the challenging financial environment and noted that South Yorkshire has lower economic activity and higher-level qualifications compared to the GB average, impacting people's spending power and travel choices.

Councillor Dave Phillips questioned why South Yorkshire's bus patronage had fallen faster than other combined authorities and what measures other authorities were taking to protect their bus patronage. Gareth Sutton, Executive Director of Resources and Investment, explained that Greater Manchester's bus franchising, which includes service enhancements and integrated ticketing, has seen a 10% increase in patronage. He also noted that South Yorkshire's economic situation and lower footfall in city centres contribute to the decline. The team is developing a growth strategy for public transport use, focusing on faster journeys, integrated ticketing, marketing, and safety improvements, alongside investment in new electric vehicles.

Paul Schofield suggested combining data onto a graph to correlate bus grant support with patronage trends across authorities. Gareth Sutton agreed to provide a revised graph with bus mileage and grant information, and to include Greater Manchester's data to show the potential impact of franchising.

Steve Wragg raised concerns about a generational shift where children are not using buses due to parental transport, and questioned whether aspirations for public transport travel numbers needed to be reset. He also pointed to Meadowhall as a major retail destination where bus is not a preferred mode of transport. Mark Davis confirmed that under-18s free travel is being rolled out across the county, starting with Barnsley and a pilot in Sheffield, with a county-wide rollout planned for September 2027.

Review of Financial Regulations

Mike Thomas, Deputy CFO: Strategic Finance, presented the annual refresh of the Financial Regulations. The main changes were structural and aimed at improving clarity. A key improvement highlighted was the clear articulation of officers' expectations to comply with not only the financial regulations but also the standards and processes that underpin them. Next steps include a finance improvement plan focusing on the scheme of delegation and accountability, linked to the Corporate Services Transformation Programme.

Paul Schofield asked about deadlines for carrying forward budgeted items and the financial limits for directors' approvals. Mike Thomas explained the quarterly budget revision process and the ongoing work to standardise delegation levels, noting that capital expenditure often has more flexibility.

The committee was asked to comment on the financial regulations ahead of their presentation to the MCA Board for approval, which they agreed to do.

Bootcamps - Lessons Learned

David MacDougall, Director of Work and Skills, presented the lessons learned review following the termination of a Skills Bootcamp contract with Construction Helpline due to operator failure. The review identified good practice in the existing contract management framework, which provides a clear roadmap for supplier engagement, escalation, and performance understanding. Recommendations include improving the contract management framework, enhancing audit processes, and embedding learner feedback.

Questions were raised by Paul Schofield regarding the process for handling negative learner feedback and by Steve Wragg concerning data protection and how learner data is transferred and used. David MacDougall assured that checks and balances are in place for feedback and that data agreements are embedded within contracts. Gareth Sutton added that the Corporate Services Transformation Programme (CSTP) is actively considering the need for a formal change management team to map out risks associated with new funding or powers.

The committee was asked to note the report, which they agreed to do.

Bus Franchising Update

Vedrana Braithwaite, Programme Delivery Lead for Bus Franchising, provided an update on the programme, stating that it remains on track for the commencement of franchised services in September 2027. Significant progress has been made in procurement, fleet, depots, electrification, and mobilisation. Invitation to Negotiate responses have been received from five operators, and evaluation is underway. Intent to award notices have been issued for approximately 390 vehicles. All four depots have been acquired, and Holbrook electrification has been accelerated.

Paul Schofield inquired about constructive feedback provided by a bidder, which Vedrana Braithwaite could not elaborate on in open session but agreed to follow up. He also asked for clarification on the moderation process, which was explained as a review of scoring to understand comparisons. Steve Wragg expressed optimism about the deadlines despite contracts not yet being signed and the delivery of 400 buses within a tight timeframe. Vedrana Braithwaite assured that deadlines are still considered doable, with contingency built into the plan. She also confirmed that 390 electric buses have been commissioned, with the remainder being diesel for contingency.

The committee agreed to note the report, with a portion of the discussion moving to a private session due to commercial prejudice.

Anti-Fraud and Corruption Policy Review

Mike Thomas, Deputy CFO: Strategic Finance, presented the annual refresh of the Anti-Fraud and Corruption Policy. He noted that this year's update was lighter touch compared to previous years, incorporating learnings from internal audits and experience from a new starter in Claire James's team. Key changes include strengthened links to the wider governance framework, expanded provisions on reporting and confidentiality, enhanced preventative controls, and the introduction of post-incident effectiveness reviews. References to anti-money laundering have been removed, with a separate policy under development.

Paul Schofield questioned the interim procedures for anti-money laundering, expressing concern about a potential gap. Mike Thomas explained that the risk is minor due to minimal cash handling, but acknowledged the potential for non-cash money laundering and agreed to expedite the separate policy. Paul Schofield also suggested adding audit report dates to a table for better context. The committee approved the revised policy.

Governance Improvement Plan Update

Claire James, Head of Governance, presented the first progress update against the Governance Improvement Plan 2026-27. She reported good progress across all seven themes, with the strongest in data, digital, AI governance, governance of complex partnerships, and modernisation of governance processes. Three themes require particular attention: Ethical Culture and Leadership (Amber), Contract Commercial Governance (Amber), and Equality, Diversity and Inclusion in Governance (Red). The Red rating for EDI is due to delays in securing dedicated leadership capacity and resource.

Paul Schofield expressed concern about the slow progress in ethical culture and leadership, particularly regarding whistleblowing, but agreed that the survey provided a good baseline. He also asked for examples of tasks that would be undertaken with new resource for EDI. Claire James explained that the focus is on embedding EDI principles into services and ensuring people-centred design, rather than just statutory compliance. Gareth Sutton added that the organisation's growth necessitates in-house specialisms for efficiency.

The committee noted the progress made against the plan and the mitigating actions being taken.

KPMG Progress Update

Henry Lau from KPMG provided a verbal update on the external audit of the MCA, Chief Constable, and SYFTL. He reported that the audits were progressing well and were ahead of schedule. No risks were identified in achieving the statutory backstop date of 31 January 2027, and there were no changes to the significant audit risks communicated in the indicative audit plan. KPMG anticipates issuing an unmodified audit opinion for the MCA group for 25/26. The committee noted the verbal update.

Internal Audit Plan Progress Report

Anna Mullen presented the Internal Audit Plan Progress Report. Four reports had been finalised: Police and Reform Commissioning, Independent Custody Visits and Escalation Routes, Ethical Conduct of Officers, and a Follow-up Report. Three audits were underway and scheduled for the next committee meeting in December. The Adult Skills Performance Management audit had been deferred to January 2027 to allow time for the new contract management framework to be embedded. The committee noted the progress report.

Internal Audit Reports

Anna Mullen then presented the findings from the finalised internal audit reports:

• Police and Reform Commissioning Report: This report received reasonable assurance, identifying one medium, one low, and one advisory action. The medium action related to ensuring ongoing due diligence was maintained throughout the contract.
• Independent Custody Visits and Escalation Routes: This report also received reasonable assurance, with two medium and one low priority actions identified. The medium actions concerned the recording of training completion and the logging and monitoring of areas of concern.
• Ethical Conduct of Officers: This review identified five medium and three low priority actions. The medium actions focused on establishing a training programme for ethical conduct, clarifying processes for conflicts of interest, defining thresholds for gifts and hospitality, implementing a workflow for gifts and hospitality, and ensuring annual declarations were returned. A survey indicated that whistleblowing was an area requiring particular attention.
• Follow-up Report: This report reviewed 23 actions, with 19 completed or superseded, indicating reasonable progress overall. Four actions were found to be partially implemented, three in health and safety and one in GDPR.

Questions were raised by Councillor Dave Phillips regarding the sample size and failure rates in the Ethical Conduct report, and by Councillor Paul Schofield regarding the date of the follow-up report and slippage. Anna Mullen confirmed that the sample size was around 22 and that failures were spread across different strata. She also clarified that dates on the report indicated revised implementation dates. The committee agreed to note the findings and recommendations.

Update from JIAC

Steve Wragg provided an update from the Joint Independent Audit Committee (JIAC). He reported that a joint governance review was progressing, with a revised governance framework expected by April 2027. Issues with internal audit findings persist, but there is now stronger oversight from SYMCA and SYP regarding action management. Of 43 recommendations reviewed, only five were complete. Strategic concerns include governance, internal controls, cyber security, statutory compliance, organisational capacity, and financial sustainability. Health and safety performance improved, with fewer accidents and assaults, and increased near-miss reporting. Information governance is generally strong, but rising subject access request volumes are a strategic risk. The shared IT service review between South Yorkshire Police and Humberside Police has moved to green status. Key follow-up actions include interim quarterly finance reports, an update on internal audit actions, and a briefing on subject access request pressures. The committee agreed to note the update.

Breach of Controls Report

Gareth Sutton reported that there were no breaches of controls to report.

Work Plan 2026/27

Claire James presented the rolling work plan for 2026/27. Paul Schofield noted that the March agenda looked light and suggested moving items from other meetings, particularly concerning the Corporate Services Transformation Programme. Gareth Sutton proposed a detailed discussion on fiscal devolution in March, explaining the potential shift from grant funding to taxation, which would significantly change the financial operating environment. Claire James confirmed that the internal audit plan progress report would be included in the March meeting. The committee agreed to note the work plan.

Corporate Services Transformation Programme

Gareth Sutton and Liz Buck presented the Corporate Services Transformation Programme (CSTP). Gareth Sutton highlighted the organisation's rapid growth and the need to become fit for purpose to handle new responsibilities and funding. Liz Buck elaborated on the opportunity to reset how corporate services work with stakeholders, leveraging the digital strategy and aiming for a continuous change programme.

Questions were raised by Councillor Sam Burdett regarding securing money and people for the programme, and by Councillor Paul Schofield about whether the CSTP would be a screening team or redesign the organisation. Gareth Sutton and Liz Buck explained the evolving nature of the programme, the need for upfront investment, and the management of immediate challenges alongside future planning. They also discussed the organisation's lean structure compared to other combined authorities and the focus on growing talent internally. The committee agreed to note the update.

Q1 Treasury Management Report

Ian Bagshaw, Chief Accountant, presented the Q1 Treasury Management Report. He highlighted significantly higher than budgeted treasury income for the MCA (£33m forecast against £15.4m budget) due to higher cash balances and sustained interest rates. The Police Fund's forecast income was lower than budgeted (£1m against £3.7m) due to monthly grant payments instead of upfront payments. The MCA had £827.4m in investments, while the Police Fund had £12.3m. Borrowing needs for the MCA were not anticipated, and the Police Fund's borrowing need was reduced to £9m. The Bank Base Rate is expected to increase to 4% in November, with a gradual fall forecast thereafter, dependent on geopolitical events.

Councillor Dave Phillips expressed concern about the large investment areas and the associated risks, questioning if the balance would ever reduce to a more normal level for a local authority. Ian Bagshaw explained that the high cash balances were due to the integrated settlement grant received upfront and that this would change with fiscal devolution, leading to monthly receipts. He assured the committee that investments are made securely with local authorities and reputable banks, adhering to the treasury strategy. Gareth Sutton added that the high interest rate environment had enabled significant activities, such as bus franchising and bringing the tram under public control, but warned that this funding source is not sustainable long-term.

The committee noted the report and agreed to the recommendations.

Issues for Escalation

No issues were raised for escalation.

The next meeting was scheduled for 30 December.