COUNCIL MEETING 11 JUNE 2026
INTERNAL AUDIT 2025/26 AND ANNUAL GOVERNANCE AND ACCOUNTABILITY
RETURN (AGAR) 2025/26

INTERNAL AUDIT 2025/26
1. The Council’s accounts have been audited by the Internal Auditor for the financial
year 2025/26. The year-end report precedes this report on this agenda. In its
opening paragraph it is stated that the year end report should be read in conjunction
with the Interim Audit report dated 30 November 2025. This report addresses the
recommendations of the Internal Auditor in both audit reports.

2. Interim Report

The report for the first half of the financial year contained a number of
recommendations which have been addressed as follows:

Risk Assessment – Fidelity Cover. The Auditor recommended review of fidelity cover
as the current cover was below the recommended guidelines.
The Council reviewed the cover and determined that the current cover was
adequate.

Transparency – At the time of the Interim Audit the Council had no IT policies in place
and it was recommended that the Council consider adopting the NALC model IT
policy and a Data Protection Policy.

The Council duly adopted an IT Policy and a Data Protection Policy.

Transparency Code for Smaller Authorities – The Auditor recommended that whilst
information continues to be published in its current form, in addition a Transparency
Code folder be created on the website containing all the material required to be
published by the code, thereby ensuring compliance with the code.

A Transparency folder has been created which contains sub folders for each
category of information required to be published.

3. Year End report
AGAR Return -The Auditor gave helpful advice and made one recommendation upon
how the draft AGAR return could be improved, thereby smoothing the passage of the
external audit. The advice and recommendation have been followed in the AGAR
return now submitted to Council for approval.
Financial Risk Assessment – The Auditor noted that the Financial Risk Assessment
was reviewed by SPF Committee on 29 January 2026 and recommends that it is

reviewed by full Council in the year of audit. It was noted that the Council reviewed
the level of Fidelity Cover
For 2026/27, SPF Committee will consider the Financial Risk Assessment including
the Fidelity Cover and make recommendations to Council.
Transparency – The Auditor noted that the Council had met the requirements of the
Transparency Code but recommended that information concerning procurement data
(contracts over £5,000) and land and car parks controlled by the Council be
presented in a more accessible format.
This will be addressed before the next interim audit.
All other aspects of the audit were found to be satisfactory and the Auditor had no
additional comments or recommendations to make.

AGAR 2025/26
The AGAR return is made up of three parts. The Annual Internal Audit Report must be
completed by the Internal Auditor. Sections 1 and 2 must be completed and approved by
the authority and Section 3 is completed by the external auditor and returned to the
authority.
The authority must approve Section 1 before approving Section 2 and both must be
approved and published on the authority’s website and noticeboards before 1 July 2026
along with a notice of the period for the exercise of public rights and a declaration that the
accounting statements are as yet unaudited.
Following approval by the Council at the meeting on 11 June, the publication will take place
on 16 June with the public rights available for exercise from 17 June to 28 July.

RECOMMENDATION
It is recommended that
1. The Internal Audit report be noted;
2. The Clerk’s report be noted;
3. Section 1 of the Annual Governance and Accountability Report be approved;
4. Section 2 of the Annual Governance and Accountability Report be approved.

Graham White
Parish Clerk
4 June 2026