Minutes of the Meeting of the Audit Committee - 26 November 2025

Prior to the meeting, the P/CEO provided a risk management briefing on risks on the following Strategic Risk –

• • • Board 13 – Risk that campuses are not sufficient to meet demand: teaching/workshop space is systematically or significantly insufficient to meet demand by more than 2 groups of students.

The P/CEO explained –

• • • That college campuses lacked sufficient capacity to meet growing demand.
    • That full-time student numbers had increased by 35% overall since pre-COVID, with the sharpest growth in technical and vocational courses, leading to unmet demand in areas like engineering and construction.
    • The short- and medium-term plans devised by the college which could reduce or mitigate the impact of having insufficient space across the campuses to accommodate the students who wished attend from 2026/27.

J. Godsmark, Internal Audit Service Validera, joined the meeting.

20/25. Election of Chair

Having been proposed by R. Harrison and seconded by M. Thompson, it was

Resolved: That C. Sharp be appointed Chair of the Committee.

C. Sharp in the Chair.

The Chair –

• • • thanked R. Sartain, who would be leaving the Board at the end of December after serving two terms, for his membership of and support for the Audit Committee since his appointment.
    • Welcomed E. Stohl to the Committee as the newly-appointed co-opted committee member.

21/25. Declarations of Interest

There were no pecuniary declarations of interest.

22/25. Draft Minutes of the Meeting Held 18 June 2025 (Appendix, Agenda Item 4)

The Minutes of the meeting held on 18 June 2025, were agreed as a true record.

23/25. Draft Audit Committee Workplan 2025 - 2026 (Appendix, Agenda Item 5)

The Committee undertook a review of the key reports to be considered by the Committee for 2025 - 2026 (previously circulated). The Committee agreed that the Draft Workplan presented a programme that reflected the Committee’s Terms of Reference. The Committee Chair reiterated that the Committee’s workload be spread evenly throughout the three meetings, particularly the meeting held in the Spring Term. The Committee agreed that the pre-meeting briefings provided an effective opportunity to understand more deeply the landscape surrounding key risks and should continue. The P/CEO invited Committee members to identify topics for the pre-meeting risk briefings.

Resolved: That the Annual Timetable of Standard Business for the Audit Committee 2025 – 2026, be approved.

24/25. Reports from Internal Audit Service (Appendices a - d, Agenda item 7)

Mr Godsmark presented the following reports (all previously circulated) –

Internal Audit Service Annual Report

The annual internal audit report summarised the outcomes of the reviews conducted on the college’s framework of governance, risk management and control to assist the Governing Body in making its annual governance statement.

The annual programme of internal audit work plan was based on the IAS Audit Needs Assessment and the resulting Internal Audit Strategy; refreshed annually in consultation with management and the Committee.

The 2024 – 2025 Annual Audit Plan had approved 32 audit days and individual reviews conducted were delivered within this budget. After the strategy had been approved, management had requested that the Core Financial Controls was deferred.

Of the five reviews conducted, four received Adequate Assurance and no reviews attracted Limited or No Assurance or urgent recommendations.

Overall, in the opinion of the IAS, based on the reviews performed during the year, Shrewsbury College had:

• • • adequate and effective risk management.
    • adequate and effective governance; and
    • adequate and effective control processes.

As the report was designed to assist the Governing Body in making its annual governance statement and complete its Annual Report to Board, the Committee was of the view that it had received sufficient assurance on the adequacy of the college’s controls and this be reflected in the Committee’s Draft Annual Report to Board.

Resolved: That the report be noted and the Audit Committee Draft Annual Report to the Board be revised accordingly.

Internal Audit Strategy 2025/26 – 2027/28

Mr Godsmark presented the draft Internal Audit Strategy 2025/26 – 2027/28.

The report set out –

• • • The key findings of the Audit Needs Assessment (ANA), following discussions with key college personnel and the Audit Committee Chair.
    • The Service’s approach to the development of the Strategy.
    • The Internal Audit Strategy.

The EDoF explained how the college proposed to maintain a record of findings that had been completed or superseded, so that auditors could more easily track these items going forwards as part of their follow up work.

The Committee, having reviewed the strategy, concluded that the proposed Plan –

• • • met the college’s priorities
    • provided suitable coverage of the college’s core risks
    • would provide the assurance required

Resolved: RECOMMENDED TO BOARD that the Internal Audit Strategy be recommended for approval.

ACTION: REPORT TO BOARD 08 December 2025

Follow Up of Audit Recommendations

The IAS reconciled the Trackers to the internal audit reports and were able to confirm that the correct Assurance Level and number of recommendations had been recorded for all audits. The IAS was also able to provide adequate assurance over the monitoring and implementation of recommendations.

The Audit provided Adequate Assurance.

Funding Assurance Review – PDSAT Review

This review had focussed on a review of the Provider Data Self-Assessment Toolkit across the main funding streams, to provide feedback on how the reports would be reviewed in a Department for Education (DfE) funding assurance review.

There was one low priority recommendation, which had been partially agreed, as management considered the college’s approach, based on complying with the published DfE guidance, sufficiently mitigated the risk identified. The Committee agreed this.

Assurance Review – Finance System Implementation

The audit reviewed the implementation and use of the college’s core Finance system. The Committee noted there was one medium recommendation, and that there were a number of low priority items.

Resolved: That the reports be noted.

Mr. Godsmark left the meeting.

Mr. M. Munro joined the meeting.

25/25. Financial Statement Auditors (FSA) Report – Draft Financial Statements for Year Ended 31 July 2025 (Appendices Agenda Items 6)

Mr Munro presented the following reports –

Financial Statements for the Year Ended 31 July 2025

Mr Munro presented the Draft Financial Statements for the Year Ended 31 July 2025 (previously circulated) which, having been substantially audited, indicated a ‘clean’ unqualified audit opinion in terms of both truth and fairness and regularity. In addition, it was anticipated issuing an unmodified regularity assurance report for the period. The Regularity Questionnaire had been signed by the P/CO as the Accounting Officer and the Board Chair. He thanked the EDoF, Finance Manager and Team for their co-operation and for providing high quality information.

Mr Munro explained that no adjustments had been identified that impacted the outturn. Mr Munro explained that, based on the work done to date, the auditors were proposing an unmodified opinion. The anticipated regularity assurance opinion would also be unmodified.

Key Issues for Discussion

The Committee reviewed the key issues that affected the audit and the preparation of the Financial Statements.

Mr Munro advised that there was nothing adverse in the discussion report (previously circulated). He explained the report’s contents, as follows –

• • • The work was substantially complete and there were currently no matters of which the auditors were aware of that would require modification of the audit opinion;
    • The audit had proceeded very smoothly, with very few issues.
    • No material errors had been identified.
    • No matters in relation to fraud or breaches in relation to laws and regulations had been identified;
    • The Letter of Representation and final version of the Financial Statements would be signed at the Board meeting on 08 December 2025;
    • Regarding fees and non-audit services, the Committee noted the Statement to the effect that the auditors were independent of the college and provided no other services.

Resolved: That the Audit Findings for Shrewsbury Colleges Group for the year Ending 31 July 2025, be accepted.

Going Concern Assessment

The EDoF presented a report (previously circulated) providing the Committee with assurance regarding the status of the college as a going concern. The draft year end accounts, 2025 - 2026 financial plan and year to date operating outcomes demonstrated continuing good financial health.

The latest weekly cashflow forecast for the year illustrated a sound ongoing cashflow position with no period of pressure on cashflows. Having received this report and the assurances of the Financial Statement auditors, the Committee was of the view that the college had in place adequate mitigating actions in place to ensure cash fluidity at this time during 2026.

Resolved: That, having considered the draft Financial Statements, the reports of the Executive Director of Finance and Financial Statements auditors, the Committee thanked Mr Munro and his Team for producing a comprehensive report and to the Finance Manager and his Team for their support and

Resolved: RECOMMENDED TO BOARD that

• • • the Committee considered the Shrewsbury College to be a going concern; and
    • the audit findings and draft year-end financial statements 31 July 2025, be recommended to the Board for approval.

ACTION: REPORT TO BOARD 08 December 2025

Mr Munro left the meeting at this point.

26/25. Audit Committee Draft Annual Report 2024 - 2025 (Appendix, Agenda Item 8)

The Committee Chair submitted the Audit Committee Draft Annual Report and advised that the report would be referred to the Board for approval prior to submission to the Department for Education (DfE).

The Annual Report to the Board provided -

• • • a summary of the work of the Committee during 2024 - 2025, including any significant issues arising up to the date of preparation of the report;
    • any significant matters of internal control included in the management letters and reports from auditors or other assurance providers;
    • the Committee’s view on its own effectiveness and how it had fulfilled its terms of reference; and
    • the Committee’s opinion on the adequacy and effectiveness of the college’s audit arrangements, its framework of governance, risk management and control and its processes for securing economy, efficiency and effectiveness.

The Committee, having reviewed the Draft Report, asked that the sections on the Internal Audit Service and Financial Statements Audit be supplemented to reflect the updates to the IAS Annual Report (Min. No. 24/25) and the Draft Financial Statements 2024 – 2025 (Min. No. 25/25), as these reports had provided further assurance to the Committee on the integrity of the college’s control systems.

Resolved: That the Draft Annual Audit Report of the Audit Committee be agreed and, subject to the further amendments requested, be RECOMMENDED TO BOARD for approval.

ACTION: REPORT TO BOARD 08 December 2025

27/25. Whistleblowing, Irregularity & Fraud – Annual Statement of Declaration of Incidents 2024 – 2025 (Appendices, Agenda Item 9)

The Committee considered a report from the Clerk (previously circulated) presenting a Declaration that no incidents of Fraud, Corruption or Whistleblowing had been reported to the Clerk’s Office during 2024 – 2025, in accordance with Financial Procedures.

An appropriate reminder of the college’s expectations of staff and the policies and procedures in place to protect the college regarding bribery and corruption and support whistleblowing was placed in the college internal newsletter annually.

Resolved: That the Committee received the Statement of the Clerk regarding Incidents of Whistleblowing and Fraud 2024 – 2025.

28/25. Audit Recommendation Tracking Report (Appendix Agenda Item 11)

The Committee reviewed the Audit Recommendation Tracking Report (previously circulated), noting progress of recommendations against target achievement dates and seeking assurance where actions had not met target dates.

29/25. Risk Register and Board Assurance Framework (Appendix, Agenda Item 10)

The Committee reviewed the 2025 – 2026 Risk Register and Board Assurance Framework (previously circulated).

The EDF explained the risks identified and mitigating actions being undertaken. Whilst no risks were rated ‘red’, the following strategic risks remained ‘high amber’-

• • • Planned Defunding of Applied General Qualifications (AGQs) in 2026/27

The P/CEO explained that the biggest risk was the lack of clarity and consistency from the Government around this issue. The college was putting in place sufficient mitigating actions to control the risk and the Register would be amended going forward.

In response to a question, the P/CEO explained how the college was supporting staff to prepare for and manage the impact of the introduction of V Levels.

• • • Risk that campuses are not sufficient to meet demand

The Committee concluded that the risks have been appropriately identified and the management actions reported were appropriate in seeking to mitigate these risks.

In response to questions, the EDoF and P/CEO provided an update on the challenges the college faced in securing sufficient funding to develop major capital projects to improve capacity at the college and to improve existing buildings. some of which now required urgent investment.

The Committee observed that securing the services of a specialist audit provider to provide assurance to the Board on the college’s cyber security arrangements was a priority and requested that the college tender for the services of a specialist audit in the near future.

Resolved: RECOMMENDED TO BOARD that the Risk Register be approved.

ACTION: REPORT TO BOARD 08 December 2025

30/25. Irregularity and Fraud

None reported.

31/25. Risk

The Committee agreed that the risks relevant to the Committee have been appropriately identified and the management actions reported were effectively mitigating these risks.

32/25. Governance Pack – Compliance Audits

The Clerk had undertaken a compliance audit against the mandatory requirements from the College Financial Handbook 2025 and Audit Committee Responsibilities under the Framework and Guide for External Auditors and Reporting Accountants of Colleges (previously circulated). The college and Committee arrangements were in full compliance.

33/25. Date of Next Meeting – Wednesday, 04 March 2026 from 5.30 p.m.

34/25. Performance Review of Internal Audit Service and Financial Statements Auditors (Confidential Appendix, Agenda Item 15)

The Committee reviewed and confirmed the conclusions of a confidential report with respect to the performance monitoring of the Internal Audit Service and the Financial Statements auditors during 2024 – 2025 (previously circulated). The EDoF agreed to feedback additional comments made by the Committee.

The meeting concluded at 7.04 p.m.