Accounts and Audit
The Local Audit and Accountability Act 2014 (the Act) governs the work of auditors appointed to smaller authorities (this Council is classed as a smaller authority). This Act and the Accounts and Audit Regulations 2015 cover the duties, responsibilities and rights of smaller authorities, other organisations and the public concerning the accounts being audited. The Accounts and Audit Regulations 2015 require smaller authorities, each financial year, to conduct a review of the effectiveness of the system of internal control and prepare an annual governance statement in accordance with proper practices in relation to accounts.
Council as a corporate body, is responsible in law for ensuring that its financial management is adequate and effective, and that the council has a sound system of internal control which facilitates the effective exercise of their functions and manages risk. The council has in place Financial Regulations which guide this process: https://heighington.parish.lincolnshire.gov.uk/downloads/download/19/policies-and-procedures?downloadID=19
Further information on the current accounting process and the associated proper accounting and governance practices we have to follow are laid down in The Practitioner’s Guide, which is issued each year by the Smaller Authorities Proper Practices Panel (SAPPP). The latest version can be found here: https://www.lalc.co.uk/jpag-practitioners-guide#scrollTop=0
Internal audit
The Council receives an intermediate internal audit part-way through the financial year and then a year-end audit.
The internal auditor must be independent of the council. For financial year 2025-26 our internal auditor is supplied via LALC (Lincolnshire Association of Local Councils).
Our internal audit reports are published under Council Business, Finances: https://heighington.parish.lincolnshire.gov.uk/council-business
External audit
The external auditors appointed to cover Lincolnshire are currently PKF Littlejohn, who perform a Limited Assurance Review at the end of each financial year.
Each year the council is required to submit an Accountability and Governance Annual Return (AGAR) for the previous financial year to the external auditors, before 30 June.
There is a set period each year (consisting of 30 consecutive working days which must include the first ten working days of July) whereby any person interested has the right to inspect and make copies of the accounting records for the financial year to which the audit relates and all books, deeds, contracts, bills, vouchers, receipts and other documents relating to those records must be made available for inspection by any person interested. During this period of Public Inspection, Local government electors and their representatives also have the opportunity to question the appointed auditor about the accounting records; and the right to make an objection which concerns a matter in respect of which the appointed auditor could either make a public interest report or apply to the court for a declaration that an item of account is unlawful. Written notice of an objection must first be given to the auditor and a copy sent to the smaller authority (the Council).
Following review of the submitted AGAR documents, the external auditor issues their report (limited assurance opinion) and certificate of completion, by 30 September.
Our AGAR and associated information are published under Council Business, Finances, and then Audit of Accounts (for the particular financial year): https://heighington.parish.lincolnshire.gov.uk/council-business