1. Parish Council Annual Governance and Accountability Return (AGAR)
Purpose:
The AGAR is a statutory document that parish and town councils must complete and publish each financial year. It ensures transparency and accountability in how public money is managed.
Key Points:
Includes a summary of the council's income and expenditure.
Contains sections on governance, internal audit, and accounting statements.
Confirms that the council has followed proper practices in financial management.
Is submitted to an external auditor or published under the “exempt” status if the council's income/expenditure is below a threshold.
2. Statement of Accounts
Purpose:
The Statement of Accounts is part of the AGAR and provides a summary of the council’s financial position at the end of the financial year.
Key Points:
Shows details like cash balances, total income and expenditure, and asset values.
Must be approved by the full council and signed off by the Responsible Financial Officer and the Chair.
Offers transparency to the public and forms the basis for external audit (if applicable).
3. Exercise of Public Rights to View Accounts
Purpose:
This is a legal requirement that gives local residents the right to inspect and request copies of the council's accounting records and related documents.
Key Points:
Allows members of the public to view how public money is being spent.
Usually involves a 30-working-day inspection period, which must include the first 10 working days of July.
During this time, electors can:
Inspect the accounts.
Ask the auditor questions.
Object to the accounts if they believe they are unlawful or raise a concern.
Summary
Together, these processes ensure that:
Parish councils remain financially accountable to their communities.
Residents can scrutinise spending decisions.
Public trust is maintained through openness and lawful financial management.
Purpose of the Internal Parish Council Annual Audit
The internal audit is a key part of a parish council’s system of financial control. It is designed to provide independent assurance that the council’s financial operations are conducted properly and in accordance with the law.
Main Purposes:
Ensure Proper Financial Management
Checks that the council is managing public money responsibly, lawfully, and efficiently.
Verify Compliance with Laws and Regulations
Confirms the council is following legal requirements, such as those in the Local Audit and Accountability Act and Proper Practices (Practitioners’ Guide).
Review Internal Controls
Examines the systems the council uses to control spending, record income, manage risks, and prevent fraud or error.
Support Transparency and Accountability
Helps reassure councillors, residents, and auditors that the council’s finances are being handled openly and correctly.
Identify Weaknesses and Recommend Improvements
The internal auditor provides a report that may include suggestions to strengthen financial procedures or correct issues.
Key Features:
The internal auditor must be independent from the council’s financial management (not a councillor or officer).
The audit is based on evidence sampling, not a full review of all transactions.
Findings are included in the Annual Governance and Accountability Return (AGAR).
In short, the internal audit is an essential check that helps ensure parish councils use public funds properly and protect the interests of the community.
To view the documents please follow the links below: