AGAR completion guidance from PKF Littlejohn

As we all know this is an important part of our councils duties and the figures must tally. Therefore, it is worth people actually checking the end of year balances on the AGAR. Historically, the public have not been given access to inspect, as is the publics right. I can only assume that the clerk will correct this omission, judging by the December Agenda. I would have asked why the 2024-25 AGAR uses a BF figure of £3381 and not £3640. See below:

Annual Governance and Accountability Return (AGAR), a mandatory annual report for English parish and town councils to show they are accountable to their electorate. This return is a key part of the external audit process that demonstrates the council’s financial management, governance procedures, and compliance with regulations. It includes a governance statement, accounting statements, and the results of an internal audit, all of which must be reviewed by both the council and an external auditor. 

Key functions of the AGAR

• Accountability: It provides a transparent overview of a council’s financial activities, showing how public funds are managed.
• Compliance: The return helps councils meet statutory and financial regulations, including adherence to internal control procedures.
• Transparency: By making the AGAR public, councils provide residents with the ability to review their financial performance and governance arrangements. 

The AGAR process

1. Preparation: At the end of the financial year, the council’s Responsible Finance Officer (RFO) prepares the financial statements.
2. Internal Audit: An independent internal auditor reviews the council’s accounts and internal controls. Their report is submitted to the council as part of the AGAR.
3. Council Approval: The council members approve the AGAR, including the governance and accounting statements.
4. Public Inspection: The council publishes the unaudited AGAR for the public to inspect during a specific period, and electors have the right to ask questions or raise objections.
5. External Audit: The AGAR is submitted to an external auditor for examination.
6. Publication: Once audited, the final AGAR is published by the council. 

Important considerations

• The process has strict deadlines, with the AGAR usually needing to be completed and submitted by the end of June each year.
• Clerks and RFOs often work extra hours to complete the AGAR, and it’s recommended to prepare for the workload well in advance. 

The document beneath the table is guidance for Councils on how to complete the AGAR, the quoted document is for 2024-25.

If you compare SPC AGARS, there are some discrepancies and having the public check may help. For example at 31 March 2024 the AGAR stated there was £3640, yet on this years ago the figure brought forward was £3381 not £3640. A difference of £259. The reason is that the figures transposed from the AGAR 2023/24 are not the same as AGAR 2024/2025 – there must be a reason?