Update on the Parish Council’s Annual Audit - AGAR

Update on the Parish Council’s Annual Audit - AGAR

Residents are asking where the Parish Council’s annual audit process is up to.  Below is an update.

The external auditor, PKF Littlejohn, has started reviewing the Parish Council’s AGAR (Annual Governance & Accountability Return). However, they have confirmed they cannot complete the audit yet.

PKF explains that this delay is because they have received correspondence from an elector or electors relating to the 2025/26 accounts or possibly earlier years. When this happens, the auditor is legally required to pause the process while they review the correspondence.

The pause is because the auditor must deal with the correspondence before issuing the final certificate.

Recent uploads to the Parish Council website

The Parish Council has recently added several new files to the Documents section of its website.

These relate to the annual accounts and audit process and are now available for residents to view:

https://culchethandglazebury-pc.gov.uk/

Summary of Challenges Raised

The issues raised with the auditor have been grouped into clear categories:

Unlawful Expenditure

Concerns were raised about payments made without the usual safeguards — such as missing approval minutes, missing contracts or service agreements, lack of quotes or tenders, and instances where procurement rules may not have been followed.

Accounting Records Not Kept Properly

Several items relate to how financial records were maintained. These include incomplete or inconsistent records, mis‑coded entries, missing invoices, unclear supplier information, and issues with redaction or documentation during the inspection period.

Failure to Follow Proper Practices

Some challenges relate to how the Council handled public rights and governance processes — including:

• files/documents being removed during the public inspection period by a parish councillor,

• some of those documents subsequently being redacted,

• payment made to a family member of a Parish Councillor without minuted approval or declaration,

• missing minute references,

• inconsistent document handling,

• and procurement processes that did not follow recommended guidance.

Misconduct Causing Loss or Deficiency

A small number of items relate to conduct concerns, such as conflicts of interest not being declared, payments made in a way that created risk, or behaviour that may have affected access to accounting records.

What the Parish Council must do next

Even though the audit is not yet finished, the council is required by law to:

• Publish a Notice of Audit explaining that the audit is still in progress

• Publish the unaudited AGAR documents, including the interim auditor report

• Keep these materials available for public inspection

These steps must be completed by 30 September 2026.

Where to find national guidance

Residents who want to understand how the AGAR process works nationally can find clear guidance here:

AGAR guidance

Council Accounts – A Guide to Your Rights: https://www.pkf-l.com/wp-content/uploads/2020/09/Council-accounts-a-guide-to-your-rights.pdf

PKF Littlejohn – Useful information and links: https://www.pkf-l.com/services/audit-assurance/limited-assurance-regime/useful-information-and-links/

Guidance for Potential Objectors (2025/26): https://www.pkf-l.com/wp-content/uploads/2026/01/Guidance-for-potential-objectors-2025-26.pdf

SAAA (Smaller Authorities’ Audit Appointments): http://www.saaa.co.uk/

Key change to Section 2, Box 11: https://www.pkf-l.com/services/audit-assurance/limited-assurance-regime/submission-requirements/key-change-to-section-2-box-11/ 

What happens next

PKF will continue their review and will issue a final audit certificate once the correspondence has been fully considered. Only then will the audit be formally closed.

If residents have questions about the documents or the process, the Parish Clerk can be contacted at: clerk@culchethandglazebury-pc.gov.uk

We’ll do our best to keep residents updated when the final documents are released.