Annual Governance and Accountability Return AGAR, at 31 March 2023
The Annual Governance and Accountability Return (AGAR) is a key document that all smaller local councils in England, including town and parish councils, must complete each year. It provides a formal summary of the council’s financial activities and governance arrangements for the financial year ending 31 March.
The AGAR is made up of several parts: the Annual Governance Statement, which confirms that the council has followed proper practices; the Accounting Statement, which summarises income, expenditure, assets, and any liabilities; and the Internal Audit Report, completed by an independent auditor to assess internal controls which the Town Council appoints annually.
The purpose of the AGAR is to ensure transparency, accountability, and public confidence in how councils manage public money. Once completed, by no later than 30 June annually, the AGAR and the supporting documents required are submitted to a UK Government appointed external auditor who assesses the responses of each council and carries out what is called a Limited Assurance Review. If the External Auditor raises any questions, each Council is required to respond with more information, and/or to correct the financial breakdown they originally submitted. Once each Review is completed, the External Auditor issues a Report and Conclusion of the Audit. On receipt, and ny 30 September annually, this also has to be made public on each Council’s website.
Once each Council has finalised the AGAR, the documents submitted for External Audit are required to be displayed for a six week period for public inspection. The designated six week period to publish this information must include the first two weeks in July as a national requirement of all local councils. Due to the amount of information per year that the Town Council publishes, each year-end AGAR is attached as a separate document for clarity.
The AGAR helps to demonstrate that the council is well run, financially sound, and acting in the best interests of the community. The supporting papers as required by the External Auditor help to explain the Town Council’s most recent financial year and compares these figures with the previous financial year, for any significant change to be explained.
The annual Community Infrastructure Levy (CIL) Report is required by Chorley Council, as the principle or District Council and the Local Planning Authority. It is Chorley Council that awards CIL monies reflecting development in progress in the Town Council’s area collected from individual planning applications during construction on site. This money has to be spent to improve the infrastructure of Adlington to mitigate the impact of new development for the betterment of the Adlington community. Once awarded, the Town Council has up to 5 years in which to consider suitable ways to spend this money. It can also be used as a contribution towards appropriate projects that either Chorley Council or Lancashire County Council wish to deliver with the Town Council’s agreement.