d. Annual Governance and Accountability Return (AGAR)

Annual Governance and Accountability Return (AGAR) is the principal means by which your council is accountable to its electorate.  It must be completed by all councils with any financial transactions.    It contains a number of governance assertations which acknowledge responsibility by councillors for the system of internal control and governance arrangements during the past year that the council has:

• put arrangements in place for effective financial management, and prepared the accounts in accordance with regulations;

• maintained an adequate system of internal control, accepting responsibility for safeguarding public money and resources;

• taken reasonable steps to comply with laws and regulations, has only done what it has the legal power to do, and has complied with proper practices;

• published financial information for general inspection so that local electors had the opportunity to inspect and ask questions about the accounts;

• considered, assessed and managed financial and other risks;

• appointed a competent and independent person to review the financial controls and procedures and give an objective view on them;

• responded to any matters brought to its attention by internal and/or external audit;

• disclosed whether there are any potentially damaging liabilities or events, such as an impending claim against the council;

• met its responsibilities and properly managed any trust funds (where applicable).

The AGAR also includes accounting statements which are summaries of income and expenditure, precept, staff costs, assets and liabilities and reserves, taken from the council's accounts.

The council (and therefore all councillors) are responsible for making sure that the AGAR presents accurate information about the council's financial management so councillors must be confident that the council is compliant. 

The council must approve an annual governance statement by a resolution of the full council and then consider and formally approve its statement of accounts and the AGAR for publication by the first working day of July.   The Chair of the council signs the AGAR at the meeting approving it, along with the clerk.

If the council's income or expenditure is over £25,000 it must then be sent to the external auditor along with explanations of any variances together with the bank reconciliation and bank statement.  The AGAR is signed (after completion and adoption) by the Chair and clerk NOT clerk/RFO.

If the council's income or expenditure is under £25,000 they will still need to complete and publish the AGAR but only a "certificate of exemption" from the external auditor needs to be signed and submitted to the external auditor.