The Audit & Governance Committee of Shropshire Council convened to discuss a range of issues, including internal control management, audit performance, and financial strategies. A key focus was the council's financial sustainability and adherence to governance procedures, particularly in light of a recent financial emergency declaration. The committee also planned to review the council's counter-fraud strategy and consider options for fraud investigation.

• Internal Control Management Update: The committee was scheduled to discuss a report responding to the Chief Audit Executive's 'limited assurance' opinion on the council's governance, risk and internal control framework. The report noted that just under half of all audit recommendations made during 2024/25 were due to significant or fundamental issues. The report also detailed steps taken by the Interim Chief Executive, Tanya Miles and the Leader of the Council, Councillor Heather Kidd to address these concerns, including regular meetings of the council's statutory officers and the development of an overall Improvement Plan. The report included questions and answers from Councillor Kidd and Tanya Miles regarding the council's plan to improve its assurance rating.
• Auditor's Annual Report: The committee was expected to consider the Auditor's Annual Report (AAR) from Grant Thornton UK LLP, the council's external auditor. The AAR summarised work undertaken during 2024/25 and included a commentary on value for money arrangements. The report included a statutory recommendation and three key recommendations focusing on financial resilience.
• Internal Audit Performance Report: The committee was scheduled to discuss Internal Audit's performance against the 2025/26 Audit Plan. The report noted a decrease in 'good or reasonable assurances' and an increase in 'limited and unsatisfactory assurance levels'. The report also detailed two fundamental recommendations relating to key supply contracts and adult social care outturn.
• ASC Outturn Update: The committee was expected to receive an update on actions taken to address issues that contributed to a significant change in financial monitoring positions for Adult Social Care (ASC). The report noted that a review determined there was a misalignment of savings delivery monitoring and reporting. The report also detailed key changes and improvements underway, including a review of cost centres and savings targets.
• Treasury Strategy Mid-Year Review: The committee was scheduled to discuss the Treasury Strategy Mid-Year Report, which covered an economic update, a review of the Treasury Strategy and investment/borrowing strategies, and compliance with treasury and prudential limits. The report noted that as at 30 September 2025, the council held £44.1 million in investments and had £420 million of borrowing.
• Fraud Investigation Options: The committee was expected to consider a report regarding the proposal to create a dedicated Counter Fraud Team. The report detailed various options for delivery of counter fraud work, including a dedicated in-house team, a shared service model, and contracting out to an external provider.
• Annual Review of Counter Fraud, Bribery and Anti-Corruption Strategy: The committee was scheduled to discuss the annual review of the Counter Fraud, Bribery and Anti-Corruption Strategy. The report outlined measures undertaken to evaluate the potential for fraud and how the council manages these risks. The strategy was said to align with the Chartered Institute of Public Finance and Accountancy's (CIPFA) code of practice on managing the risks of fraud and corruption.
• Final Approval Statement of Accounts: The committee was expected to approve the 2024/25 Statement of Accounts, following completion of the audit. The report noted that the audit was substantially complete and that Grant Thornton were planning to provide an unqualified audit opinion.
• The Lantern Management Update: The committee was scheduled to receive an update on the 2024/25 follow-up audit of The Lantern, a multi-purpose facility in Shrewsbury, assessing progress on recommendations made in the 2021/22 audit. The 2024/25 follow-up audit found limited progress, with 21 recommendations identified. The assurance level was 'unsatisfactory'.
• Deferred Payments Management Update: The committee was expected to receive an update on the 2024/25 Deferred Payments, assessing progress on recommendations made in the 2021/22 audit. The 2024/25 follow-up audit identified a weakened control environment and made 19 recommendations. The assurance level was 'unsatisfactory'.
• Annual Audit Committee Self-Assessment: The committee was scheduled to review and comment on their self-assessment of good practice, using a questionnaire to assess the effectiveness of the Audit & Governance Committee and identify areas for improvement.
• Fraud, Special Investigation and RIPA Update: The committee was expected to receive a brief update on current fraud and special investigations undertaken by Internal Audit, and an update on Regulation of Investigatory Powers Act (RIPA) activity.

Councillor Duncan Kerr, Group Leader - Green Group was scheduled to attend the meeting, along with Malcolm Myles-Hook, Rhys Gratton, Mark Owen, Duncan Borrowman, Carl Rowley, Sharon Ritchie-Simmons, Kate Halliday, Nigel Lumby, and Jim Arnold (Independent Member). Michelle Dulson was the Committee Officer, and Tim Collard was the Service Director – Legal, Governance and Planning. Barry Hanson, James Walton, and Katie Williams were also scheduled to be in attendance.