"AGAR Compliance Checklist for Parish Councils"
"2026-03-05" · "Quorate" · "Compliance Guides"
# AGAR Compliance Checklist for Parish Councils
The Annual Governance and Accountability Return (AGAR) is the most important compliance obligation facing parish and town councils in England. Every year, councils must complete Section 1 (Annual Governance Statement) and Section 2 (Accounting Statements), submit them to an external auditor, and publish the results.
Most clerks find AGAR stressful — not because the assertions are complicated, but because the evidence is scattered across filing cabinets, email inboxes, and spreadsheets. This guide breaks down each assertion and tells you exactly what evidence you need.
## The 9 Governance Assertions
### Assertion 1: Financial records
*"We have put proper arrangements in place to prepare and approve our accounting statements."*
**Evidence needed:** Bank reconciliation matching cashbook. Budget vs actuals report approved at council meeting. Year-end figures presented and approved by resolution.
**How Quorate helps:** Financial governance module produces bank reconciliation reports and budget vs actuals automatically. Year-end approval recorded as a resolution in meeting minutes.
### Assertion 2: Internal control
*"We maintained an adequate system of internal control including measures designed to prevent and detect fraud and corruption."*
**Evidence needed:** Financial Regulations document. Payment authorisation records showing dual signatures. Internal audit report received and actioned.
**How Quorate helps:** Dual authorisation enforced by system for payments above threshold. Audit trail shows who approved what. Risk register maintained with regular review dates.
### Assertion 3: Compliance with laws
*"We took all reasonable steps to assure ourselves that there are no matters of actual or potential non-compliance with laws, regulations and proper practices that could have a significant financial effect."*
**Evidence needed:** Standing orders adopted and reviewed. Financial regulations reviewed. Legal advice obtained where needed (recorded in minutes).
**How Quorate helps:** Standing orders review date tracked. Policy review schedule monitored in compliance dashboard. Minutes record all legal advice discussions.
### Assertion 4: Exercise of public rights
*"We provided proper opportunity during the year for the exercise of electors' rights in accordance with the requirements of the Accounts and Audit Regulations."*
**Evidence needed:** Notice of public rights published (30 working days). Start and end dates recorded. Public inspection period advertised.
**How Quorate helps:** Public portal publishes the notice automatically. Dates tracked in the compliance dashboard.
### Assertion 5: Risk management
*"We carried out an assessment of the risks facing this authority and took appropriate steps to manage those risks, including the introduction of internal controls and/or external insurance cover where required."*
**Evidence needed:** Risk register reviewed at least annually. Insurance schedule reviewed. Internal controls documented.
**How Quorate helps:** Risk register maintained within the platform with review dates and risk scores. Annual review reminder. Insurance review tracked as a governance action.
### Assertion 6: Internal audit
*"We maintained throughout the year an adequate and effective system of internal audit of the accounting records and control systems."*
**Evidence needed:** Internal auditor appointed. Internal audit plan agreed. Internal audit report received and acted upon.
**How Quorate helps:** Internal audit appointment recorded as a resolution. Audit report actions tracked in the action management system.
### Assertion 7: External audit
*"We took appropriate action on all matters raised in reports from internal and external audit."*
**Evidence needed:** Responses to audit recommendations documented. Actions from audit findings tracked to completion.
**How Quorate helps:** Actions from audit recommendations tracked as governance actions with deadlines and completion status.
### Assertion 8: Significant events
*"We considered whether any litigation, liabilities or commitments, events or transactions, occurring either during or after the year-end, have a financial impact on this authority and, where appropriate, have included them in the accounting statements."*
**Evidence needed:** Minutes showing consideration of post-year-end events. Legal commitments disclosed.
**How Quorate helps:** Year-end meeting template includes a specific agenda item for post-year-end events. Recorded in minutes.
### Assertion 9: Trust funds
*"Trust funds including charitable. In our capacity as the sole managing trustee we discharged our accountability responsibilities for the fund(s)/assets, including financial reporting and, if required, independent examination or audit."*
**Evidence needed:** Separate accounts maintained for trust funds. Trust fund reports presented to council. Independent examination completed where required.
**How Quorate helps:** Trust fund financial tracking separated from main council accounts. Reports generated for council meetings.
## Building an Evidence Pack
The best approach to AGAR compliance is to collect evidence throughout the year, not scramble for it in April. Quorate's compliance dashboard tracks all 9 assertions with green/amber/red status indicators, so you know your audit readiness at any moment.
When the external auditor comes, generate a one-click evidence pack — a single PDF containing meeting records, financial summaries, policy review dates, risk register, and resolution references for every assertion.
## Start Tracking Your AGAR Compliance
Quorate's AGAR dashboard is included in the Core plan at £150/year. [Start your free trial](/register?tier=core§or=parish_council) and see your compliance status immediately.
The Annual Governance and Accountability Return (AGAR) is the most important compliance obligation facing parish and town councils in England. Every year, councils must complete Section 1 (Annual Governance Statement) and Section 2 (Accounting Statements), submit them to an external auditor, and publish the results.
Most clerks find AGAR stressful — not because the assertions are complicated, but because the evidence is scattered across filing cabinets, email inboxes, and spreadsheets. This guide breaks down each assertion and tells you exactly what evidence you need.
## The 9 Governance Assertions
### Assertion 1: Financial records
*"We have put proper arrangements in place to prepare and approve our accounting statements."*
**Evidence needed:** Bank reconciliation matching cashbook. Budget vs actuals report approved at council meeting. Year-end figures presented and approved by resolution.
**How Quorate helps:** Financial governance module produces bank reconciliation reports and budget vs actuals automatically. Year-end approval recorded as a resolution in meeting minutes.
### Assertion 2: Internal control
*"We maintained an adequate system of internal control including measures designed to prevent and detect fraud and corruption."*
**Evidence needed:** Financial Regulations document. Payment authorisation records showing dual signatures. Internal audit report received and actioned.
**How Quorate helps:** Dual authorisation enforced by system for payments above threshold. Audit trail shows who approved what. Risk register maintained with regular review dates.
### Assertion 3: Compliance with laws
*"We took all reasonable steps to assure ourselves that there are no matters of actual or potential non-compliance with laws, regulations and proper practices that could have a significant financial effect."*
**Evidence needed:** Standing orders adopted and reviewed. Financial regulations reviewed. Legal advice obtained where needed (recorded in minutes).
**How Quorate helps:** Standing orders review date tracked. Policy review schedule monitored in compliance dashboard. Minutes record all legal advice discussions.
### Assertion 4: Exercise of public rights
*"We provided proper opportunity during the year for the exercise of electors' rights in accordance with the requirements of the Accounts and Audit Regulations."*
**Evidence needed:** Notice of public rights published (30 working days). Start and end dates recorded. Public inspection period advertised.
**How Quorate helps:** Public portal publishes the notice automatically. Dates tracked in the compliance dashboard.
### Assertion 5: Risk management
*"We carried out an assessment of the risks facing this authority and took appropriate steps to manage those risks, including the introduction of internal controls and/or external insurance cover where required."*
**Evidence needed:** Risk register reviewed at least annually. Insurance schedule reviewed. Internal controls documented.
**How Quorate helps:** Risk register maintained within the platform with review dates and risk scores. Annual review reminder. Insurance review tracked as a governance action.
### Assertion 6: Internal audit
*"We maintained throughout the year an adequate and effective system of internal audit of the accounting records and control systems."*
**Evidence needed:** Internal auditor appointed. Internal audit plan agreed. Internal audit report received and acted upon.
**How Quorate helps:** Internal audit appointment recorded as a resolution. Audit report actions tracked in the action management system.
### Assertion 7: External audit
*"We took appropriate action on all matters raised in reports from internal and external audit."*
**Evidence needed:** Responses to audit recommendations documented. Actions from audit findings tracked to completion.
**How Quorate helps:** Actions from audit recommendations tracked as governance actions with deadlines and completion status.
### Assertion 8: Significant events
*"We considered whether any litigation, liabilities or commitments, events or transactions, occurring either during or after the year-end, have a financial impact on this authority and, where appropriate, have included them in the accounting statements."*
**Evidence needed:** Minutes showing consideration of post-year-end events. Legal commitments disclosed.
**How Quorate helps:** Year-end meeting template includes a specific agenda item for post-year-end events. Recorded in minutes.
### Assertion 9: Trust funds
*"Trust funds including charitable. In our capacity as the sole managing trustee we discharged our accountability responsibilities for the fund(s)/assets, including financial reporting and, if required, independent examination or audit."*
**Evidence needed:** Separate accounts maintained for trust funds. Trust fund reports presented to council. Independent examination completed where required.
**How Quorate helps:** Trust fund financial tracking separated from main council accounts. Reports generated for council meetings.
## Building an Evidence Pack
The best approach to AGAR compliance is to collect evidence throughout the year, not scramble for it in April. Quorate's compliance dashboard tracks all 9 assertions with green/amber/red status indicators, so you know your audit readiness at any moment.
When the external auditor comes, generate a one-click evidence pack — a single PDF containing meeting records, financial summaries, policy review dates, risk register, and resolution references for every assertion.
## Start Tracking Your AGAR Compliance
Quorate's AGAR dashboard is included in the Core plan at £150/year. [Start your free trial](/register?tier=core§or=parish_council) and see your compliance status immediately.