diff --git a/compiler/ast/README.md b/compiler/ast/README.md
index 0cb2f0f03d..85615b9c8b 100644
--- a/compiler/ast/README.md
+++ b/compiler/ast/README.md
@@ -33,7 +33,7 @@ Contains the Circuit's name, as well as its members.
 The members are a function, or a variable, or a constant.
 For all of them the Circuit preserves their names.
 
-#### [Decorators](./src/functions/annotation.rs)
+#### [Annotations](./src/functions/annotation.rs)
 
 An annotation node is a decorator that can be applied to a function.
 Stored on the function themselves despite being a top-level node.
diff --git a/compiler/passes/src/code_generation/visit_program.rs b/compiler/passes/src/code_generation/visit_program.rs
index e9f95dcef8..88d2d7d462 100644
--- a/compiler/passes/src/code_generation/visit_program.rs
+++ b/compiler/passes/src/code_generation/visit_program.rs
@@ -83,10 +83,10 @@ impl<'a> CodeGenerator<'a> {
                 closures.push_str(&function_string);
                 closures.push('\n');
             }
-        });
 
-        // Unset the `is_program_function` flag.
-        self.is_program_function = false;
+            // Unset the `is_program_function` flag.
+            self.is_program_function = false;
+        });
 
         // Closures must precede functions in the Aleo program.
         program_string.push_str(&closures);
@@ -187,9 +187,6 @@ impl<'a> CodeGenerator<'a> {
         let block_string = self.visit_block(&function.block);
         function_string.push_str(&block_string);
 
-        // Unset `is_program_function` after visiting `function`.
-        self.is_program_function = false;
-
         function_string
     }
 }
diff --git a/tests/expectations/parser/functions/danling_annotations_fail.out b/tests/expectations/parser/functions/danling_annotations_fail.out
new file mode 100644
index 0000000000..d477814b4f
--- /dev/null
+++ b/tests/expectations/parser/functions/danling_annotations_fail.out
@@ -0,0 +1,28 @@
+---
+namespace: Parse
+expectation: Pass
+outputs:
+  - name: ""
+    network: ""
+    expected_input: []
+    imports: {}
+    functions:
+      "{\"name\":\"test\",\"span\":\"{\\\"lo\\\":94,\\\"hi\\\":98}\"}":
+        annotations:
+          - identifier: "{\"name\":\"test\",\"span\":\"{\\\"lo\\\":79,\\\"hi\\\":83}\"}"
+            span:
+              lo: 78
+              hi: 83
+        identifier: "{\"name\":\"test\",\"span\":\"{\\\"lo\\\":94,\\\"hi\\\":98}\"}"
+        input: []
+        output: U8
+        core_mapping: ~
+        block:
+          statements: []
+          span:
+            lo: 107
+            hi: 109
+        span:
+          lo: 85
+          hi: 109
+    circuits: {}
diff --git a/tests/expectations/parser/functions/spaced_annotation_fail.out b/tests/expectations/parser/functions/spaced_annotation_fail.out
new file mode 100644
index 0000000000..fc9be044a3
--- /dev/null
+++ b/tests/expectations/parser/functions/spaced_annotation_fail.out
@@ -0,0 +1,5 @@
+---
+namespace: Parse
+expectation: Fail
+outputs:
+  - "Error [EPAR0370028]: Illegal spacing in the annotation declaration.\n    --> test:3:1\n     |\n   3 | @ test\n     | ^^^^^^\n     |\n     = Remove whitespace between the `@` symbol and the identifier."
diff --git a/tests/parser/functions/annotated_functions_fail.leo b/tests/parser/functions/danling_annotations_fail.leo
similarity index 100%
rename from tests/parser/functions/annotated_functions_fail.leo
rename to tests/parser/functions/danling_annotations_fail.leo
diff --git a/tests/parser/functions/spaced_annotation_fail.leo b/tests/parser/functions/spaced_annotation_fail.leo
new file mode 100644
index 0000000000..6e21099b54
--- /dev/null
+++ b/tests/parser/functions/spaced_annotation_fail.leo
@@ -0,0 +1,7 @@
+/*
+namespace: Parse
+expectation: Fail
+*/
+
+@ test
+function test() -> u8 {}