Audit and Risk Assurance Committee meeting: 16 July 2026

• Mike Usher - Non-Executive Director, Chair - WG ARAC and OE and FMCO Assurance Boards
• Gareth Pritchard - Independent Member, Chair – LCC Assurance Board
• Kevin Roberts - Independent Member, Chair – LGHRRS Assurance Board
• Chris Martin - Independent Member, Chair – HCP Assurance Board
• Scott Waddington - Independent Member, Chair – ECE Assurance Board
• Andrew Goodall - Permanent Secretary
• Emma Williams - Director General, LCC Group
• Claire Bennett - Director General, LGHRRS Group
• Jacqueline Totterdell - Director General, HCP Group
• Andrew Slade - Director General, ECE Group
• Judith Paget - Director General, FMCO Group
• Dean Medcraft - Director of Finance
• Helen Morris - Deputy Director Audit, Assurance & Counter Fraud
• Caitlin Stanley - Head of Financial and Technical Accounting
• Nia James - Deputy Director, Legal Services
• Anthony Veale - Audit Wales
• Clare Thomas - Audit Wales

Also present

• Head of Corporate Governance Centre of Excellence
• ARAC Secretariat

1.1 No declarations of interest were received in relation to agenda items.

2.1 The committee agreed the minutes of the previous meeting as a complete and accurate record. Members noted the progress made in implementing agreed actions and received updates on those not yet complete.

3.1 The Permanent Secretary provided an overview of activity since the formation of the new administration. Particular attention was drawn to:

• The extensive pre-election planning and transition arrangements, which enabled a smooth transfer to the new administration and quick implementation of machinery of government changes.
• The adoption of Welsh as the default language in Cabinet proceedings. culture.
• The establishment of Private Offices and a Legislative Programme.
• Preparation for the Supplementary Budget process.
• Progress made against the First Minister’s 100-day plan.

3.2 The Permanent Secretary stressed the importance of maintaining robust governance procedures, disciplines and controls as budgetary decisions are made, to support his Principal Accounting Officer responsibilities and regularity requirements. The committee endorsed this approach.

3.3 Attention was drawn to changes at UK government level and the need to maintain effective relationships and properly consider any matters that impact on future financing or devolution.

4.1 The committee continued its scrutiny of key documentation and annual reports providing assurances that underpin the 2025-2026 Annual Governance Statement. In particular, it considered and endorsed:

• The Welsh Government ARAC Annual Report.
• The Head of Internal Audit’s Annual Report.

4.2 The committee began its scrutiny of the Welsh Government’s draft Consolidated Accounts, by reviewing:

• Part 1: The Performance Report, which outlines the functions of the Welsh Government, sources of funding, how the funding is spent and how it performs.
• Part 2: The Accountability Report, which includes the Statement of Accounting Officer’s Responsibilities, Annual Governance Statement, Remuneration and Staff report, Summary of Resource Outturn and Certificate and Report of the Auditor General for Wales.

4.3 Audit Wales provided the committee with an update on their review of the draft Consolidated Accounts and outlined the challenges faced, including those associated with the new student loans model and valuation of the roads network. The committee discussed these areas, noted the continued close collaborative working between Welsh Government and Audit Wales, and endorsed the process and the anticipated timetable for the review and publication of the Consolidated Accounts.

4.4 The committee discussed the emerging themes from the independent internal review of the Welsh Government’s consolidated accounts process. The review should conclude over the autumn, and a further, more detailed discussion will be held.

4.5 The committee undertook its annual review of the Internal Audit Charter and Mandate and approved their use for the next 12 months without amendment. The committee also discussed Internal Audit’s recent independent assessment against its compliance with the new Global Internal Audit Standards. It was pleased to note that an overall assessment of ‘generally conforms’ with the standards had been provided, with positive statements against the team’s professionalism, independence, stakeholder confidence and engagement quality.

4.6 The committee received an update on the Corporate Risk Register and endorsed the ongoing review by officials to ensure it properly reflects revised ministerial priorities and is aligned with the Corporate Risk Appetite Statement.

4.7 The committee considered and endorsed the summaries from the Group Assurance Boards, which focussed on the approach to Programme and Project Management, workforce pressures, machinery of government changes, delivery of new ministerial priorities and emerging risks associated with new responsibilities. Members noted that transitions arising from machinery of government changes had been managed effectively. The updates also reflected the positive assurances in relation to governance, risk management and control that the DG’s were able to take following discussions at their Assurance Boards.

4.8 The committee discussed and noted progress made in implementing agreed audit recommendations.

4.9 The committee considered the Internal Control Questionnaire process and discussed the improvements in moderation, challenge and evidence gathering across Groups, which have resulted in increased consistency and stronger quality assurance processes.

4.10 The committee noted the Audit Wales update on their value for money studies, which had been discussed in detail at each Group Assurance Board meeting.

ARAC Secretariat
October 2026