Responsible Financial Officer
​[email protected]

A Parish Council in England submits an Annual Governance and Accountability Return (AGAR) each year because it is a legal requirement that ensures public money is properly managed, transparently reported, and independently reviewed.

Parish Councils are “smaller authorities” under UK local government law and are responsible for spending public funds such as the precept (the local tax collected through council tax). Because this is public money, they must demonstrate accountability to both residents and external regulators.
The AGAR process exists under the Local Audit and Accountability Act 2014 and associated regulations. It provides a standardised way for councils to show:

• Financial accountability – that income and spending have been correctly recorded and balances are accurate
• Governance accountability – that the council has proper systems, controls, and decision-making processes in place
• Legal compliance – that it has followed relevant laws, guidance, and proper financial procedures

Each year, the AGAR is reviewed in two stages:

• The council itself completes and approves statements about its finances and governance
• An external auditor (appointed through the national smaller authorities audit system) reviews the return and may raise issues or confirm it is compliant

Finally, the AGAR must be made publicly available, so local residents can inspect the accounts and see how public money has been used.
In short, Parish Councils submit the AGAR every year to ensure transparency, legal compliance, and independent scrutiny of how local taxpayer money is managed.