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AGAR

AGAR stands for Annual Governance and Accountability Return, a key financial and governance reporting document for parish councils.

The Annual Governance and Accountability Return (AGAR) is a set of documents that parish councils and other local authorities in England must complete each year to demonstrate proper financial management, governance, and compliance with statutory requirements It is a central part of the external audit process and ensures transparency and accountability to the public.

Purpose of AGAR

  • Accountability: AGAR provides a clear overview of a council’s financial activities, governance procedures, and decision-making processes, showing responsible stewardship of public funds
  • Compliance: It ensures that councils adhere to legal and financial regulations, including proper internal controls and statutory obligations
  • Transparency: By making AGAR publicly available, parish councils allow residents and stakeholders to review financial performance, budgeting decisions, and governance arrangements
  • External Audit: The completed AGAR is submitted to an external auditor, who reviews the council’s accounts and governance procedures, issuing an audit opinion on compliance and accuracy

Components of AGAR

AGAR typically consists of three main sections:

  1. Annual Governance Statement (Section 1): Councils answer a series of assertions about governance, internal controls, and compliance, usually with ‘yes’, ‘no’, or ‘not applicable’ responses
  2. Accounting Statements (Section 2): This section presents the council’s financial position, including income, expenditure, and balances
  3. Internal Audit Report: An independent report assessing the adequacy and effectiveness of the council’s internal control systems.

Parish Council Requirements

Parish councils must approve AGAR at a duly convened Full Council meeting; informal approvals via email, phone, or committees are not lawful Smaller authorities or parish meetings may use specific AGAR forms depending on their financial activity, such as Form 1PM, Form 2PM, or Form 3PM. The AGAR must be completed annually after the financial year ends and submitted to the external auditor within the statutory deadlines
In summary, AGAR is the formal mechanism through which parish councils demonstrate financial accountability, governance compliance, and transparency to their communities

AGAR 2025/26 is here (PDF, 2 MB)

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