Sector backs major overhaul of Practitioners' Guide ahead of 2027 launch
Reforms to annual reporting requirements for smaller authorities are on the way after a sector‑wide consultation revealed strong demand for clearer guidance, more transparency and proportionate requirements. The Smaller Authorities Proper Practices Panel (SAPPP), working with the Chartered Institute of Public Finance and Accountancy (CIPFA), gathered extensive feedback during its eight‑week consultation, with parish and town councils, auditors and practitioners all calling for change.
The consultation found that the current Annual Governance and Accountability Return (AGAR) does not fully meet community information needs. While some felt it remained broadly sufficient, most wanted more detail and more accessible explanations. SAPPP has agreed to strengthen guidance in areas such as expenditure reporting, technical clarity, asset guidance, joint committee rules and reserves management, all of which will be reflected in a new guide to the proper practices.
There was also overwhelming support for simpler accounting guidance. Many practitioners reported that the existing material is too technical, particularly for non‑accountants. The new guide will offer clear explanations of receipts and payments versus income and expenditure accounting, along with plain‑English support for parish and town councils transitioning between methods when required.
Calls to improve transparency around audit reports received strong backing. SAPPP will introduce mandatory requirements for parish and town councils to discuss internal and external audit findings in public meetings, publish reports online and produce proportionate action plans responding to identified risks.
Internal audit standards are also set for a refresh. The consultation highlighted the need for auditors with appropriate sector knowledge, independence and, for larger authorities, relevant professional qualifications. SAPPP intends to phase in a new requirement for internal auditors to be properly trained and experienced at a level proportionate to each authority's size and risk exposure.
Training for clerks and council staff completing the AGAR emerged as another priority. Respondents asked for accessible, jargon‑free and affordable training, ideally available online and on demand, to support part‑time staff and smaller parish and town councils. SAPPP noted the outcomes and will work alongside sector partners to review the provision of training in this area.
SAPPP aims to publish the final guide, combining mandatory requirements and best‑practice guidance, in early 2027, and it will apply to the 2027/28 financial year, with the revised AGAR completed in 2028.
