Parish and town councils are invited to comment on proposals to update the framework governing their governance, financial reporting and internal audit. The consultation closes on 31 October 2026.

The Smaller Authorities Proper Practices Panel (SAPPP) has launched the second stage of its review of proper practices for Category 2 Authorities in England, which include parish and town councils. CIPFA is undertaking the review on SAPPP’s behalf, with support from Smaller Authorities’ Audit Appointments (SAAA).

Proper practices set out the mandatory standards authorities must follow in areas such as governance, accountability, accounting and audit. The review aims to make the framework clearer, more practical and proportionate to the needs of smaller authorities.

The consultation seeks views on two proposed documents:

• Proper Practices Code for Category 2 Authorities (England)

• Code of Practice for Internal Audit of Category 2 Authorities (England)

Councils, clerks, councillors, auditors and members of the public are encouraged to consider whether the proposed codes provide sufficient guidance to help authorities meet their responsibilities. Particular areas for feedback include changes to the Annual Governance Statement, the treatment of reserves, the presentation of accounts and the approach to internal audit.

ALCA encourages member councils to review the proposals and share their practical experience. This is an opportunity to help shape requirements that will affect councils’ financial management and annual reporting.

Following the consultation, SAPPP will consider the responses before finalising the framework. Subject to approval, the updated documents are expected to apply from the 2027/28 financial year.

View the consultation documents and submit your response on the CIPFA website by 31 October 2026.