The Audit & Governance Committee of Shropshire Council was scheduled to discuss a range of critical governance, risk management, and financial oversight matters. Key agenda items included updates on the Council's Improvement Plan, adult social care outturn, supply contracts management, and strategic risks. The committee was also set to review internal audit performance, the draft internal audit plan for the upcoming year, and the committee's own work plan and training needs.

Improvement Plan Update

The committee was scheduled to receive an update on the progress of Shropshire Council's Improvement Plan. This plan was developed in response to a declared financial emergency in September 2025, recommendations from the Local Government Association (LGA) Corporate Peer Challenge, and a Statutory Recommendation from the External Auditor. The report outlined the arrangements being developed and implemented to ensure the delivery of the plan, focusing on communications, engagement, governance, assurance, capacity building, and the measurement and reporting of progress and impact. The plan's aims include achieving financial stability and sustainability for the Council.

Adult Social Care Outturn Management Update

A report was scheduled to provide an update on the management of the outturn for Adult Social Care. This follows a significant financial deterioration noted between periods 11 and 12 of the 2024/25 financial year, which led to an internal audit review. The review identified a misalignment in savings monitoring and reporting, with a substantial amount of projected savings found to be non-cashable. The report was expected to detail the progress made in addressing the issues that contributed to this overspend and the implementation of recommendations made by internal audit.

Supply Contracts Management Update

The committee was due to receive an update on the ongoing work within the procurement and contracts area of the council concerning supply contracts management. This report was intended to provide assurance on the progress being made in this area, acknowledging the challenges and resources needed for improvements. The council's Improvement Plan also includes specific actions for procurement and commissioning, recognising the need for enhanced practices and efficient use of resources, with over £422 million paid to external organisations in 2024/25.

Strategic Risks Update

An update on the Council's strategic risks was scheduled for discussion. This report, prepared by the Strategy and Scrutiny Manager, would likely outline the current high-level risks facing Shropshire Council, including those related to financial sustainability, governance, workforce resilience, and service delivery. The discussion was expected to cover how these risks are being managed and monitored.

Internal Audit Performance Report and Revised Annual Audit Plan 2025/26

This report summarised the work undertaken by Internal Audit up to January 2026, detailing the assurance levels achieved for completed audits and the number and categorisation of recommendations made. It highlighted a concern regarding a higher proportion of lower-level assurances compared to previous years, potentially indicating strain on systems and processes due to the financial emergency and organisational change. The report also proposed revisions to the 2025/26 audit plan to ensure sufficient activity to inform the year-end opinion, while remaining agile to emerging risks. A fundamental recommendation regarding budget monitoring was detailed, with management's action plan outlined.

Risk Management Audit Report 2025/26

The committee was scheduled to review the findings of an Internal Audit review of the Council's Risk Management system. The overall control environment for risk management was assessed as Limited, with evidence of non-compliance with some key controls. The report detailed specific control objectives and the conclusions reached, highlighting areas where the Opportunity Risk Management Strategy requires redrafting and where operational risk register reviews showed poor compliance. Recommendations were expected to address these weaknesses to improve the timeliness and accuracy of risk register updates and reporting.

Draft Internal Audit Annual Plan 2026/27

This report presented the proposed risk-based Internal Audit Plan for the 2026/27 financial year. The plan aims to provide coverage across high-risk areas of the Council and deliver services to external organisations. It takes into account the Council's risk appetite, the need for an annual internal audit opinion, and the challenging environment of financial pressures and workforce constraints. The plan includes specific allocations for audits related to the Improvement Plan and a contingency for fraud and advisory work.

Audit and Governance Committee Work Plan and Future Training Requirements 2026/27

The committee was scheduled to review and approve its proposed work plan for the upcoming year, outlining the reports to be considered and the assurances sought. Additionally, a learning and development plan for committee members was to be discussed, focusing on core areas of knowledge and specialist skills required to effectively discharge their duties. This plan aims to ensure members are well-informed and appropriately skilled, with proposed training sessions throughout the year.

Treasury Strategy 2026/27

A report on the Treasury Strategy for 2026/27 was scheduled for discussion. This would likely provide an economic update, a review of the Council's investment and borrowing strategies, and confirmation of compliance with treasury and prudential limits. The committee would be asked to agree the proposed Treasury Strategy activities.

Other Scheduled Items

The agenda also included items such as the Minutes of the previous meeting, Public Questions, Member Questions, and the Date and Time of the Next Meeting. Additionally, there were provisions for the Exclusion of Press and Public for specific exempt items, including Exempt Minutes and a report on Contract Rules Exemptions.