The Audit and Governance Committee of Shropshire Council met on Friday 25 September 2026 to review a range of assurance reports and updates. Discussions were scheduled to cover the Chief Executive's update, an external assurance review of exceptional financial support, annual risk management, internal audit performance, and the review of the Committee's own terms of reference. The committee was also set to consider the internal audit charter and mandate, and the external audit findings for the Shropshire County Pension Fund.

Chief Executive Update

The committee was scheduled to receive an update from the Chief Executive, Tanya Miles, regarding the actions being taken to strengthen governance, risk management, internal control, and accountability across Shropshire Council. This report built upon previous updates and reflected work being undertaken through the Council's Improvement Plan, addressing governance issues identified in the 2025/26 Annual Governance Statement. The report indicated that governance arrangements were in transition, with credible responses established through the Improvement Plan, People Plan, and enhanced financial control environments. The Chief Executive's commitment to leading the Council towards stronger governance, improved accountability, and a culture of compliance, openness, and constructive challenge was to be highlighted.

Exceptional Financial Support: External Assurance Review

A report was scheduled to be shared detailing an 'Assurance Review' undertaken by the Chartered Institute of Public Finance and Accountancy (CIPFA) in April 2026 on behalf of the Ministry of Housing, Communities and Local Government (MHCLG). This review was part of the arrangements associated with the Council receiving Exceptional Financial Support (EFS) from the government. The report provided an independent assessment of the Council's financial resilience, governance arrangements, service transformation activity, and organisational capacity. It made 22 recommendations across financial management, financial sustainability, service reform, and governance, culture, and leadership. The report noted that many of these recommendations aligned with priorities already being addressed through the Council's Improvement Plan and Financial Sustainability and Recovery Strategy.

Annual Risk Management Update and Strategic Risks

The committee was due to review the Council's approach to identifying, assessing, managing, and reporting significant risks. This report was particularly important given the Council's current financial, operational, and governance pressures. It aimed to confirm that the Council's strategic risk profile and the associated controls, mitigations, and planned actions provided sufficient assurance that significant exposures were being appropriately managed. The report detailed proposed changes to the management of the risk function, with it moving to Legal and Governance under the Head of Policy and Governance. Plans for resourcing the risk management function, including the creation of a new Risk Manager post and an additional Risk Management Officer, were also to be discussed. A review of the current Risk Management Strategy and Framework was underway, with a new framework to be implemented using a ten by ten scoring matrix for all risks. The report also detailed the Council's 12 strategic risks, overseen by the statutory officers group, and the status of 82 operational risk registers containing 1062 risks.

Internal Audit Performance Report 2026/27

This report was scheduled to provide an update on Internal Audit activity between April and August 2026. It summarised progress against the approved 2026/27 Internal Audit Plan, highlighted revisions to the plan, and reported on the outcomes of completed audit work, including assurance opinions and recommendation themes. The report indicated that 29 final reports had been issued, with 58% receiving good or reasonable assurance and 42% receiving limited or unsatisfactory assurance. This was noted as an improvement compared to the same period in the previous year, although the movement was to be interpreted with caution. Revisions to the plan were necessary due to changes in resources, with a decrease in planned audit days. The report also detailed two fundamental recommendations made in the audits of Monitoring of Schools Deficit and Surplus Budgets and Bishops Castle Community College.

Annual Review of the Audit and Governance Committee's Terms of Reference

The committee was scheduled to review its own Terms of Reference to ensure their continued appropriateness and alignment with relevant legislation, guidance, and best practice. This annual review aimed to confirm that the Committee's role, responsibilities, and authority were sufficient for effective oversight of the Council's governance, risk management, and internal control framework. Amendments were proposed to clarify the committee's role in certain aspects of the governance framework and to reflect anticipated legislative changes regarding independent member requirements. The report also noted the ongoing recruitment process for a replacement independent member.

Internal Audit Charter and Mandate

This report presented the Internal Audit Charter and Mandate for review and approval. The Charter defines the purpose, authority, and responsibilities of the Internal Audit function, ensuring its independence and alignment with the Global Internal Audit Standards (GIAS). The proposed Charter included minor amendments, with no significant changes from previous versions. It reiterated the independence of the Internal Audit Manager from the Chief Audit Executive and detailed the reporting lines and access rights of the Internal Audit function.

External Audit: Shropshire County Pension Fund Annual Audit Findings (Information) 2025/26

The committee was to receive the Audit Findings Report from Grant Thornton UK LLP regarding the Shropshire County Pension Fund for the year ended 31 March 2026. This report summarised observations arising from the audit, including the status of the audit, materiality, significant risks identified, and other matters. The report indicated that the audit work was substantially complete, with an anticipated unmodified audit opinion. Outstanding matters included the valuation of Level 3 investments and the review of IAS 19 responses. The report noted no material adjustments or findings in relation to management override of controls, and that the valuation of Level 3 investments was still ongoing, pending receipt of audited financial statements from LGPS Central. One recommendation was made to management regarding enhanced review of complex member data movements.

Contract Rules Exemptions Update and Fraud, Special Investigation, RIPA and Exemptions Update

Items 15 and 16 of the agenda were marked as restricted, indicating that the public and press would be excluded from these discussions in accordance with Schedule 12A of the Local Government Act 1972. These items related to Contract Rules Exemptions Update and Fraud, Special Investigation, RIPA and Exemptions Update.