NALC welcomes SAAA annual report and call for stronger governance
We have welcomed the publication of the Smaller Authorities' Audit Appointments (SAAA) Annual Report 2025/26, which highlights the continued effectiveness of the Limited Assurance regime while identifying areas where parish and town councils can improve their governance and compliance.
The report shows that the Limited Assurance regime remains a stable and proportionate framework for the nearly 10,000 smaller authorities it covers. In 2024/25, 94% of Limited Assurance Reviews were completed on time, demonstrating the overall resilience of the system.
However, the report also highlights a continuing pattern of avoidable governance and procedural issues. Around a third of smaller authorities received a qualified Limited Assurance opinion, with qualifications remaining broadly consistent year on year. SAAA says these are most commonly linked to incomplete or inconsistent Annual Governance Statements, procedural non-compliance and weaknesses in governance processes, rather than financial viability or material misstatements.
We believe this should provide reassurance about the overall financial health of the sector, while also underlining the importance of getting the basics right.
The report also sets out a number of planned improvements, including progress on SAAA's Making Annual Governance and Accountability Return (AGAR) Digital programme. The new digital portal is intended to make the AGAR process clearer, more efficient and accessible, while helping parish and town councils avoid common submission errors. SAAA expects the portal to be fully operational for AGAR submissions for the 2026/27 audit year.
SAAA is also continuing to support the review of proper practices, with the aim of providing clearer requirements and helping practitioners improve compliance.
We welcome these developments and look forward to continuing to work with SAAA and the wider sector to reduce avoidable errors, strengthen governance and ensure parish and town councils have the support they need to meet their responsibilities.
