3. Preparing for Year End
โข Expect the additional work involved and factor this in to
the workload/schedule
โข Up to date and accurate data is key
โ Ensure all data is accurately recorded in the cashbook
โ Complete monthly bank reconciliations up to date to
reduce workload at Year End
โ Collate data for your VAT Return/Claim if possible
6. Preparing for Year End:
R&P or I&E?
โข Understand the accounting approach you need to take:
โ Councils less than ยฃ200k = Receipts & Payments
โ Councils ยฃ200k - ยฃ6.5million = Income & Expenditure
(3 consecutive years)
โ Smaller councils can opt to use I&E
โ If moving between approaches beware requirement to
restate the prior year
7. Preparing for Year End
โ Familiarise yourself with instructions from the Auditor
and understand what level of Audit is required and
what this entails e.g. could your council be exempt
from audit (if under ยฃ25k)?
โ Refer to the JPAG Practitioner's Guide - supports the
preparation of the AGAR
โ Do you need to restate the prior year?
8.
9. The AGAR
โข The Annual Governance & Accountability Return
โข For the period 1st April - 31st March
Sections
โข Internal Audit Report
โข Section 1: The Annual Governance Statement
โข Section 2: The Accounting Statements
10. The AGAR
โข Internal Audit Report
โ The summarised conclusions from the Internal Auditorโs
report
โ To consider adequacy and effectiveness of the Councilโs
procedures & internal controls e.g. Calculation of the
Precept, maintenance of the Asset Register
โ Carried out at least annually
โ Scope and extent will depend on the Councilโs size and
circumstances
12. The AGAR
โข Section 1: Annual Governance Statement
โ To review effectiveness of the system of internal controls
โ โYesโ or โNoโ Response to each Statement
โ There must be appropriate evidence to support a โYesโ
answer
โ โNoโ answers must be accompanied by a separate sheet
identifying weaknesses and how they will be addressed
โ The response to assertions 2 and 6 will come from the
Internal Audit Report (adequate system of internal
control and internal audit)
15. The AGAR
Receipts & Payments or Income & Expenditure?
โ Receipts & Payments
โ take ๏ฌgures directly from the cashbook
โ Income & Expenditure
โ Exclude VAT (will constitute a debtor or creditor)
โ Add adjustments - Creditors & Debtors
โ Consider materiality & regularity
โ Ensure last yearโs adjustments are reversed
17. The AGAR
โข Line 1: Balances Brought Forward
โ Ensure equal to Box 7 of previous year
โข Line 2: Precept or Rates & Levies
โ Precept only for councils (rates/levies refers to drainage
boards)
โข Line 3: Total Other Receipts
โ All other receipts. Do not include any bank transfers /
movements of money
โ Exclude VAT if working in I&E
18. The AGAR
โข Line 4: Staff Costs
โ Be aware of guidance as to what can be included
โข Line 5: Loan Interest / Capital Repayments
โ Record separately from other payments
โข Line 6: All other payments
โ All payments excluding staff costs & loan repayments. Do not
include any bank transfers / movements of money
โ Exclude VAT if working in I&E
19. The AGAR
โข Line 7: Balances carried forward
โ Ensure this is equal to (Boxes 1 + 2 + 3) - (Boxes 4 + 5 + 6)
โข Line 8: Total value of cash and short term investments
โ Total cash position to equal bank rec as at 31st March
โ Will be the same as Box 7 if working in R&P
20. The AGAR
โข Line 9: Fixed Assets plus Long Term Investments
โ Update for new assets/disposal
โ Ensure consistency in reporting of total (e.g. original purchase
value or current value)
โ Ensure supporting Asset Register holds all relevant information
โ Ignore depreciation
โข Line 10: Borrowings
โ Update ๏ฌgure to amount owed at Year End
โ Usually loans from PWLB
21. The AGAR
Other Documents to be Submitted
Bank Reconciliation
โ As at 31st March (to agree to Line 8)
Reconciliation between Line 7 & 8 (I&E)
โ Summary of debtors & creditors
Explanation of Variances
โ For variances over 15% for Lines 2, 3, 4, 5, 6, 9 and 10 or
if Box 7 is more than twice Line 2
โ Full numerical explanations / breakdown of Reserves
22.
23. Signing of Year End Documents
โข Complete the Accounting Statements - RFO to sign
โข Meeting of the Council:
โ Internal Audit Report - received and noted
โ Annual Governance Statement - approved
โ Accounting Statements - approved
โ Certi๏ฌcate of Exemption (if relevant) - approved
โข Chairman & Clerk sign the Annual Governance Statement
โข Chairman signs the Accounting Statements
24. Signing of Year End Documents
โข RFO sets Commencement Date for Exercise of Public Rights
โ Accounting records must be made available to view by any
interested person
โ Electors can also raise questions or make objections
โ The AGAR must be approved and published before the
inspection period starts
โ The period must be 30 working days and include the ๏ฌrst
10 working days of July.
25. Signing of Year End Documents
โ If exempt from Audit the RFO and Chairman sign the
Certi๏ฌcate of Exemption and send to the External Auditor
โข If not exempt from Audit the following documents need to be
sent to the External Auditor:
โ The AGAR
โ Explanation of Variances
โ Bank Reconciliation as at 31st March
โ Details of the Exercise of Public Rights
โ Any other information speci๏ฌcally requested
26. Publication of Documents
โ Documents to be published (if Exempt from Audit):
โ The Annual Internal Audit Report
โ The Annual Governance Statement
โ The Accounting Statements
โ An analysis of Variances
โ Bank Reconciliation as at 31 March
โ Copy of the Certi๏ฌcate of Exemption
โ Arrangements for the exercise of public rights
โ The name and address of the External Auditor
27. Publication of Documents
โ Documents to be published (not Exempt from Audit):
โ The Annual Internal Audit Report (recommended)
โ The Annual Governance Statement
โ The Accounting Statements
โ Declaration that the accounts are as yet unaudited
โ Details of the arrangements for the exercise of public rights
โ The name and address of the External Auditor
28. Publication of Documents
โ Documents to be published following the External Audit:
โ Notice of the conclusion of Audit
โ Annual Governance Statement and the Accounting
Statements including any amendments
โ External Auditor Report & Certi๏ฌcate
29.
30. The 2023/2024 Financial Year
โ Set up the cashbook for the new Financial Year
โ Objectively review your accounts records/cashbook
โ Is your accounting system ๏ฌt for purpose?
โ Do you need training on it?
โ Does it suit the needs of your council?
โ How could improvements be made?
โ Consider change of medium or coding structure
31. The Cashbook
โข How to Structure your Cashbook:
โ Base it on your council budget/precept breakdown
โ Allocate payments and receipts out to budget codes
โ Group codes together that require reporting on e.g. Village
Hall
โข Could it be Improved upon?
โ Consider adding additional codes to analyse the data further
โ Or is it too detailed?
โ Record more information to make it easier to refer to
33. Find Out More!
If you would like more detail about Scribe please visit our website:
www.scribeaccounts.com
If you would like a free 20 minute demonstration of our accounts
package in action you can call us on 01603 856505
Please join our Facebook group:
Council Clerksโ Mastermind
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