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▶️ The Digital AGAR: What It Means for Scribe Accounts Customers

This article is based on the expected changes. Last updated: 5th November 2026 · Next review: 1st December 2026

What it is

The Annual Governance and Accountability Return (AGAR) is the yearly return that smaller authorities (in the legislation known as Category 2 Authorities) in England submit to their external auditor. The digital AGAR is a new web portal, run by SAAA (Smaller Authorities Audit Appointments), for completing and submitting it online instead of on paper.

  • Goes live: spring 2027, for the 2026/27 AGAR. Submit at agar.saaa.co.uk.
  • What moves online: the Annual Governance Statement, the accounting statements and the supporting attachments.
  • Trialled: about 80 councils and other smaller authorities submitted their 2025/26 AGARs through it in May and June 2026.
  • Try it first: the portal opens to everyone to practice from the end of November 2026 to the end of February 2027. Your 2025/26 figures will kept to fill the prior year figures for your 2026/27 return.
What it is not
  • Not compulsory in 2027. It's optional for the 2026/27 return and compulsory for everyone from 2029.
  • Not paperless yet. The internal audit section and the wet signatures remain in this phase.
  • Not an accounting system. You keep your accounts in software such as Scribe. The portal collects the final figures and documents.
  • Not an accruals requirement. Nothing published requires accruals to use the portal. Your accounting basis does not change.
  • Not automatic yet. You enter your figures into the portal by hand. SAAA has said it won't build automatic transmission from accounting software before 2029.
  • Not the Proper Practices rewrite. That is a separate change from 2027/28 (below).
Cashback incentive

Councils that submit through the portal by the 30 June 2027 deadline can claim back the value of their external audit fee from SAAA. You still pay your auditor as normal and then apply to SAAA.

Who's who What's changing, and when

2026/27 (submitted spring 2027)

  • The portal goes live and is optional.
  • Your return looks the same as now: staff costs are shown separately, reserves are not split, and income and expenditure councils still reconcile boxes 7 and 8.
  • You enter figures including pence. Software providers have been asked to stop rounding, and the portal does the rounding.

2027/28 (submitted spring 2028)

  • The revised Proper Practices apply, subject to consultation. The Practitioners' Guide is replaced by a mandatory Proper Practices Code and separate Guidance Notes.
  • New borrowing line for in-year borrowing, such as Public Works Loan Board loans.
  • The staff costs line is removed. Staff costs fall into total other payments.
  • Reserves are split into earmarked, general and long-term investments over 12 months.
  • Councils on an income and expenditure basis, typically over £200,000, show debtors, prepayments, stock, creditors, receipts in advance and accruals on the form instead of a separate reconciliation.
  • Councils must review and publish internal and external audit reports, and monitor an action plan for any findings.

Timetable

  • The consultation closes 31 October 2026. The Panel is expected to confirm after its meeting on 30 November. Final documents are due in early 2027.
  • Free NALC training starts in autumn 2027, with in-person, online and recorded options.

Not yet known

  • When software integration with the portal will be possible. SAAA has said it will come at some point but has given no timescale.
What Scribe is doing
  • We'll update Scribe Accounts to meet the new AGAR format and any requirements that follow.
  • We work closely with NALC and SAAA and are in regular contact on changes.
  • We want direct integration, similar to Making Tax Digital. SAAA has said it plans to allow software providers to link in, and we've asked to be involved.
  • Unrounded figures: Scribe reports figures to the penny, unrounded. We will remove the option to round the figures from the 2027/28 financial year onwards.
  • Restating figures for 2027/28: Scribe will support the new look AGAR from the 2027/28 year and allow users to easily restate the figures for 2026/27. A new cost code type for Borrowings will be added to meet the new requirements and Staff Costs will feed into Other Expenditure.
  • Income and expenditure fields for 2027/28: Scribe already holds the debtors, creditors, prepayments and accruals information for I&E councils and will populate the new look AGAR automatically with these figures.

FAQ
  • Do I need accruals accounting to use the digital AGAR? No.
  • Do I have to use the portal in 2027? No. It's optional until 2029.
  • Is there any benefit to using it in 2027? Yes. You can claim cashback equivalent to your external audit fee if you submit by 30 June 2027.
  • Can Scribe submit to the portal for me? Not yet. For now, you copy the figures across.
  • Will my Scribe figures match the portal? Yes. Enter the exact figures including pence and the portal does the rounding.
  • Do I need to do anything to prepare? Check that SAAA has your current council email address, as it's the portal login. Then try the portal between November and February.
  • Which councils does the 2027/28 income and expenditure change affect? Those that report on an income and expenditure basis, typically over £200,000.
  • Will the £25,000 exemption threshold change? No. NALC says the government sets it and it's staying at £25,000.
  • Where can I get official guidance? SAAA for the portal, NALC for Proper Practices. See the links above.