Review of Proper Practices
The Smaller Authorities Proper Practices Panel (SAPPP) has launched a consultation on a proposed new framework of proper practices for Category 2 Authorities in England, inviting views from parish and town councils, clerks, auditors, taxpayers and other stakeholders. This is the second stage of the wider review of the governance, accountability and accounting framework for smaller authorities. The review is being carried out by CIPFA on behalf of SAPPP, with support from Smaller Authorities' Audit Appointments (SAAA).
Proper practices set out the mandatory standards that Category 2 Authorities must follow in areas including governance, accountability, financial reporting, and audit. The current framework has been in place for over a decade, and SAPPP agreed that a full review was needed to ensure that guidance remains relevant, proportionate, and fit for purpose.
Feedback is being sought on two proposed documents:
- Proper Practices Code for Category 2 Authorities (England)
- Code of Practice for Internal Audit of Category 2 Authorities (England)
The proposed codes are intended to provide a clearer and more consistent approach to governance, financial management, accountability, and internal audit, while supporting public confidence in the sector.
SAPPP are particularly interested in views on:
- Proposed changes to the Annual Governance Statement
- Treatment of reserves
- Presentation of accounts
- New approach to internal audit
The proposals have been shaped by feedback received during the first consultation in Autumn 2025, from councillors, clerks, auditors, sector bodies and members of the public. Respondents identified opportunities to improve areas including accounts preparation, internal audit arrangements, training and the usability of existing guidance. This latest consultation provides an opportunity to help ensure that the final framework is clear, practical and supports authorities in meeting their statutory responsibilities.
Following the consultation, SAPPP will consider all responses before finalising the new framework Subject to approval, the updated documents are expected to be introduced for the 2027/28 financial year.
It is key that as many people respond and comment on the proposed framework by reviewing the consultation documents and submitting a response by 31 October 2026.