Following the recent training at the Scribe Academy on the Digital AGAR & SAPPP Proper Practices Update, it is clear we are on the cusp of the biggest overhaul to our accounting and governance frameworks in over two decades. 

We were joined by Claire Reed, Proper Practices Project Manager at NALC, and Lance Allan FSLCC, User Acceptance & Training Project Manager at SAAA for an exciting look at the brand-new online web-portal and the overall digitisation of the AGAR, as well as an update on SAPPP Proper Practices and what’s coming in 27/28.

The Smaller Authorities Proper Practices Panel (SAPPP) is the regulatory body responsible for compounding and issuing statutory proper practices for smaller local authorities across England. Representing a coalition of sector experts, auditors, and government stakeholders, SAPPP ensures local councils maintain financial accountability and structural transparency.

This blog provides a breakdown of the key changes on the horizon for SAPPP Proper Practices.

For more information on the Digital AGAR, read the blog here.

Core Framework

When guidelines become dense and confusing, avoidable administrative errors skyrocket during the Annual Governance and Accountability Return (AGAR) submission process. To fix these issues, SAPPP commissioned the Chartered Institute of Public Finance and Accountancy (CIPFA) last year to completely rewrite the proper practices framework. 

Moving forward, the framework will be split into two distinct, plain-English documents:

1. The Mandatory Proper Practices: The strict statutory requirements your council must follow by law.
2. The Supporting Guide: A practical manual to help you manage your accounts, implement robust governance, and complete the AGAR seamlessly.

This structural split was directly informed by our sector-wide consultation carried out last autumn, which pinpointed five key areas needing immediate improvement.

Detailed Breakdown

Based on your feedback, we are introducing specific structural changes designed to make the new framework a practical tool rather than just an audit-focused chore.

Plain English and Simplification

The previous guide was far too long, highly repetitive, and overwhelming for new clerks and councillors. We have streamlined the text, removed heavy bureaucratic jargon, and established a comprehensive glossary. If you come across a complex legal term like quorum, you can simply click the hyperlink to view a plain-English definition instantly.

Tailored Support for Council Types

Local government is not one-size-fits-all. The updated guidance explicitly signposts variations in rules based on your council's size or structure, such as specific rules for authorities with an income or expenditure over £200,000. For those who manage parish meetings, there will be a dedicated, standalone appendix so you no longer have to sift through irrelevant town council rules.

Practical Operational Focus

The current framework feels entirely audit-focused, looking backward at year-end. The new proper practices are designed to support day-to-day council operations. The focus shifts toward how to run your council properly every single month, automatically making the year-end audit a natural byproduct of good management.

Clear Roles and Responsibilities

Confusion between the statutory duties of the clerk, the RFO, council members, and auditors frequently leads to governance failures. The new documentation draws clear lines around these roles, ensuring members understand their collective responsibility for financial oversight.

Practical Strategies for Council Officers

The changes arriving for the 2027-2028 financial year mean council officers must adapt their internal tracking processes. On the Annual Governance Statement, while the core assertions remain the same, they are being reordered into a logical flow so that accounting questions and governance questions are grouped together.

The biggest operational shift hits Assertion 6, which is being renamed from "Audit" to Governance. Under this updated assertion, councils must adopt a proactive approach to handling audit findings:

• Public Review: All internal and external audit reports must be reviewed during an open, public council meeting and published clearly on the council website.
• Action Plan Creation: If an auditor raises any matter, the council must draft a formal action plan detailing how the issue will be corrected.
• Minuted Progress Monitoring: You must demonstrate active monitoring of this plan.

As a practical strategy, this can be as simple as adding a recurring item to your council meeting agenda. For example, your July minutes should explicitly note that the council reviewed the audit action plan, tracking progress such as moving toward a secure gov.uk email domain.

Additionally, CIPFA has authored a brand-new Code of Practice for Internal Audit specifically for Category 2 authorities (those with income or expenditure under £15 million). If you employ an independent, professional internal auditor, you have nothing to worry about. This code specifically targets the unacceptable practice of hiring an unqualified local resident who signs off public accounts in exchange for a bottle of wine or a shopping voucher. Our councils hold public funds, and a robust internal audit is a non-negotiable statutory standard.

Scenario-Based Guidance

The accounting statements are officially being renamed the Statement of Accounts to match the language used in primary legislation. Depending on your council's financial size, these updates will look slightly different.

For Authorities on an Income and Expenditure Basis

If your council operates on an income and expenditure basis (typically those over £200,000), you will no longer need to submit a separate, loose reconciliation sheet to bridge the gap between Box 7 and Box 8. Instead, fields for debtors, prepayments, stock, creditors, receipts in advance, and accruals are built right onto the front of the AGAR form itself.

For Smaller Councils Seeking Staff Privacy

A massive win for smaller, single-staff councils is the elimination of the separate Staff Costs line item. Previously, printing a lone employee’s salary on a public notice board felt like a privacy violation. Staff costs will now be merged entirely into Total Other Payments and Expenditure. While the data remains accessible via monthly payment lists for transparency, it will no longer be highlighted on the front page of your annual return.

For Councils Holding Large Community Infrastructure Reserves

To combat public friction over the precept, all councils will now be required to split their balances on the front of the AGAR into Earmarked Reserves and General Reserves. If your council is sitting on a large Community Infrastructure Levy (CIL) payment or section 106 allocation, residents will easily see that those funds are ring-fenced for specific infrastructure projects, justifying why the general precept covers standard operational costs.

Key Takeaways

• Prepare for 2027-2028: The new rules will be published in early 2027 and will apply to the 2027-2028 financial year, impacting the AGAR forms you sign in the spring of 2028.
• Upgrade Your Internal Audit: Ensure your internal auditor is independent, competent, and fully aware of the new CIPFA Code of Practice.
• Formalise Audit Action Plans: Begin practicing the habit of creating, minuting, and web-publishing action plans for any audit points raised this year.
• Have Your Say: A final, sector-wide consultation will run throughout August and September of this year, giving you the chance to review the full text and share your feedback.

Conclusion

These updates represent a monumental, positive shift toward making council management clearer, more transparent, and less prone to simple administrative errors. By separating mandatory rules from practical guidance and using plain English, we can ensure every council operates with the highest standards of integrity. Ultimately, good governance isn't about passing an audit, it is about protecting public money and delivering the best possible service to our local communities.

Webinar Playback

Access the recording and slides here.