The Audit Committee of Shropshire Council was scheduled to meet to discuss internal and external audit reports, risk management, and corporate governance. The committee was also expected to review the progress of the North West Relief Road project and the short breaks service.

Here's a breakdown of the key items on the agenda:

Annual Governance Statement and Code of Corporate Governance

The committee was scheduled to consider the Annual Governance Statement (AGS) 2024/25, which is an accountability statement from the council to its stakeholders, explaining how well it has delivered on governance over the past year. The AGS is based on the council's code of corporate governance, which in turn is based on guidance provided by the Charted Institute of Public Finance and Accountancy (CIPFA) and the Society of Local Government Chief Executives (SOLACE). The committee was asked to comment on the AGS and the internal audit conclusion that the council has reasonable evidence of compliance with the code. The planned actions to address issues raised in the 2023/24 AGS were also up for discussion.

The AGS is written as an open and honest reflection of the Council's governance challenges. It identifies areas for improvement in an action plan.

Internal Audit Performance and Annual Opinion

The committee was scheduled to discuss the Internal Audit Performance Report 2024/25, summarising the internal audit's work in the final quarter of the year. The report includes the Chief Audit Executive's opinion on the council's internal controls. The committee was asked to endorse the performance of internal audit against the audit plan, and to identify any actions it wishes to take in response to low assurance levels or fundamental recommendations.

Based on 431 recommendations across 60 reports and supporting evidence the Chief Audit Executive's opinion provides 'Limited Assurance' on the Council's framework for governance, risk and internal control.

North West Relief Road (NWRR) Management Update

The committee was scheduled to receive an update on the North West Relief Road (NWRR) project, including actions taken to address recommendations from an internal audit report and a review by external auditors Grant Thornton. The report noted that levels of assurance now show a Strengthening Control Environment to Reasonable, which is an improvement from the Unsatisfactory Assurance Level in the 2023/4 report.

The risk of not actioning the Recommendations in the Audit Report in relation to project governance are that the Council fails to achieve key milestones in the delivery of this project. Slippage or non-delivery of the NWRR (as a currently live project) will then impact the wider benefits, economic, environmental, and social that the NWRR will achieve, along with the Councils reputation and financial standing.

The NWRR project has experienced several delays since the planning application was submitted in early 2021. Progress on the project is currently paused to evaluate potential next steps.

Risk Annual Report

The committee was scheduled to receive an overview of risk activity during 2024/25, and a summary of the council's current risk exposure in relation to strategic, operational, and project risks. The report sets out the undertakings, challenges and achievements accomplished by the Risk & Business Continuity Team during the year.

Internal Audit Resource Update

The committee was scheduled to receive a report providing a brief update on the current internal audit structure, and the latest position following a recruitment campaign. The Audit Committee had previously expressed concern that the Internal Audit team were not sufficiently resourced.

Whilst recognising the Head of Policy and Governance assurance, this committee is worried about the further loss of an auditor. This compounds our reservations at recent meetings about the audit team's ability to provide sufficient audit function and provide more than the 'limited assurance', that we are getting used to.

Customer Journey Programme Update

The committee was scheduled to receive an update on the progress of the Customer Journey Programme, which aims to improve how customers interact with the council. The programme brings together several elements, with the two most significant being customer journey digitalisation, and the delivery of community and family hubs.

Short Breaks Service Management Update

The committee was scheduled to receive an update on the progress against recommendations following an audit review of the council's short breaks services. Short breaks are designed to offer enriching experiences for children while relieving parents and carers of their daily caregiving responsibilities. The audit resulted in an overall assurance rating of unsatisfactory.

External Audit Plan

The Engagement Lead was scheduled to present the External Audit Plan.

Other Business

The agenda also included:

• Minutes of previous meetings
• Public Questions
• Member Questions
• Date and Time of Next Meeting
• Exclusion of Press and Public
• Exempt Minutes of the previous meeting
• Contract Rules Exemptions Update