The Governance and Audit Committee of Hull and East Yorkshire Combined Authority was scheduled to consider the authority's first statement of accounts and annual governance statement, alongside the external auditors' strategy memorandum. The committee was also scheduled to review the internal audit annual report and progress updates on finance, treasury management, and strategic risks.

Statement of Accounts and Annual Governance Statement

The committee was scheduled to receive a report outlining how the Hull and East Yorkshire Combined Authority would prepare its first Statement of Accounts and Annual Governance Statement for the period from 5 February 2025 to 31 March 2026. The report was scheduled to detail the statutory framework for preparing these accounts, the Audit Committee's role in overseeing the process, and an indicative timetable for preparation, audit, and approval. The report was to recommend that the committee note the statutory requirements, the proposed timetable, and the arrangements supporting the preparation of the Annual Governance Statement. The report highlighted that failure to prepare and publish these documents would expose the Authority to significant statutory, governance, financial, and reputational risks.

Audit Strategy Memorandum

The committee was scheduled to receive the Audit Strategy Memorandum for the period ended 31 March 2026, prepared by the Authority's external auditors, Forvis Mazars LLP. This memorandum was scheduled to provide an overview of the planned scope and timing of the audit, including identified significant and enhanced audit risks. It was also scheduled to summarise considerations and conclusions regarding the auditors' independence. The report indicated that the audit fees for statutory audit work were proposed at £179,899, with no non-audit fees.

Internal Audit Annual Report and Progress Report

The committee was scheduled to be presented with the Internal Audit Annual Report for 2025/26 and the Q1/Q2 Progress Report for 2026/27. The purpose of this report was to provide independent assurance, insight, and foresight over governance, risk, and control. The report indicated that Internal Audit provided a limitation of scope opinion on the overall adequacy and effectiveness of the framework of governance, risk management, and control operating at Hull and East Yorkshire Combined Authority (HEYCA). This limitation was attributed to the organisation being newly established and 2025/26 being its first full financial year, with the control framework still in development. A significant risk identified was in Procurement & Decision Making, where a limited assurance opinion was given in Q4 2025/26 due to weaknesses in legacy procurement practices. A follow-up review in September 2026 found good progress in implementing agreed actions, with revised delivery dates set for January 2027.

Finance and Treasury Management Update

An update was scheduled to be presented on the Authority's budget, spending, and funding position for 2025-26 and 2026-27, alongside treasury management arrangements. The report indicated a forecast outturn surplus of £2.8m for 2026-27 based on spend and income at the end of Q1. The report detailed variances in operational costs, including a surplus on employee costs due to recruitment timing and a deficit on supplies and services due to external supplier engagement to fill capacity gaps. Several additional grant allocations were confirmed, impacting the income budget and corresponding investment programme budgets. The capital budget for 2026-27 was also detailed, with additional grant allocations reflected in the revised budget. Treasury management activity, managed by East Riding of Yorkshire Council's Finance team, was reported to have generated a surplus of £0.279m in Q1 investment income due to higher-than-expected cash balances.

Strategic Risk Report

The committee was scheduled to receive the Risk Management Framework (RMF), which sets out the combined authority's approach to risk management, and the Strategic Risk Register as of 31 August 2026. The report was scheduled to present the current strategic risk profile and the effectiveness of associated controls and mitigating actions. The RMF outlines four pillars: Risk Management Process, Roles & Responsibilities, Monitoring and Reporting, and Risk Control. The Strategic Risk Register identified several risks, including Failure to effectively deliver the Gameplan actions relating to the 'Fit and Healthy' priority (SR01), Having effective business continuity in place during a disruptive incident (SR02), and Failure to deliver the HEYCA Gameplan with regards to the delivery of economic growth and jobs (SR07).

Executive Forward Plan of Decisions and Matters Arising

The committee was scheduled to note the Executive Forward Plan, which outlines future decisions to be taken by the Combined Authority Board, Advisory Committees, or by Mayoral Decision Notice. This plan aims to ensure transparency by detailing key and non-key decisions, with reports generally available online one week before a decision is taken. A key decision is defined as one likely to result in the Combined Authority or Mayor spending or saving a significant amount (currently £1 million) or having a significant effect on communities across two or more wards.

Governance and Audit Committee Work Programme

The committee was scheduled to consider its work programme for the upcoming period. The published work programme for 2026-27 included scheduled items such as Finance and Treasury Management Updates, Risk Management Updates, the Statement of Accounts for 2025-26 and 2026-27, Internal Audit Arrangements and Progress Updates, Counter Fraud Policies, and a Review of the Authority's Constitution. External Audit Updates were also listed.