As a charity the PCC is expected to report clearly and fully on the money that it receives and spends. The Charity Commission has clear rules on how charities should account for their finances, and for reporting these accounts. As charities, PCCs must comply with this guidance.
Preparing your PCC accounts
Every set of PCC accounts must include the following 3 elements – trustees annual report, financial statements and the independent examination/audit report. A PCC must have a financial year of 1st January to 31st December. This is not optional, and PCCs must not run “tax-year” accounts.
The accounting rules and guidelines for PCCs (and all other charities) are set down in the official Statement of Recommended Practice known as Charities SORP Charities SORP 2026.
The information contained in Charities SORP 2015 has been collated into a book by the National Church – PCC Accountability 5th edition– which specifically explains how the recommended practice applies to PCCs. A free online copy and links to where to purchase hard copies are available here PCC Accountability Guide | The Church of England. All PCC treasurers and Independent Examiners/Auditors should have a copy of the PCC Accountability book or access to it.
What the Charity Commission and Charity Law requires of you as a PCC depends on your “gross income” (defined as total receipts from all sources except the receipt of any endowment, loans and proceeds from the sale of investments or fixed assets).
Gross Income under £100,000: you can choose to prepare your accounts on the Receipts and Payments basis, summarising all amounts received and paid during the year, you must ensure that your accounts comprise a receipts and payments account and a statement of assets and liabilities and you do not currently need to register with the Charity Commission.
Gross Income over £100,000 but less than £250,000: you can choose to prepare your accounts on the Receipts and Payments basis, summarising all amounts received and paid during the year, you must ensure that your accounts comprise a receipts and payments account and a statement of assets and liabilities and at this level of income, you must register with the Charity Commission. (click for guidance).
Gross Income over £250,000: you must prepare your accounts on the accruals basis taking account of income due but not received and liabilities for expenditure due but unpaid in the year, you must ensure that your accounts comprise a Statement of Financial Activities and a Balance Sheet and if income exceeds £500,000 a Statement of Cash Flows must also be prepared. You must register with the Charity Commission.
Please follow the link below to Parish Resources for detailed guidance on PCC accounts. This includes the link to the latest version of the PCC Accountability guide: the Charities Act 2011 and the PCC, and example PCC accounts formats.
Examination of accounts
All PCC’s are required to have their accounts independently examined or audited, regardless of income level, each year.
The trustees have a legal duty under the Charities Act 2011 to appoint ‘an independent person who is reasonably believed by the trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts’.
It is the responsibility of the PCC to appoint, at the APCM, an auditor / independent examiner to examine their accounts each year and the PCC must be satisfied that the auditor / examiner has the requisite ability and experience.
It is recommended that the independent examiner attends the APCM at which the accounts are presented or, at least, has a discussion with the incumbent or churchwardens ahead of the APCM. We would also recommend that the independent examiner should not have a personal relationship with the PCC treasurer and should be known to others on the PCC beyond the treasurer. Best practice would be for the independent examiner / auditor to be changed at least every 6 years.
The thresholds for whether a PCC’s accounts should be audited or independently examined are currently:-
Total Income up to £250,000: independent examination
Total income £250,000 to £1,000,000 or gross assets up to £3.26m: independent examination by a qualified examiner. You can check the qualification requirements here - Independent examination of charity accounts: guidance for trustees - GOV.UK
Total income £250,000 to £1,000,000 or gross assets over £3.26m: audit
Total income over £1,000,000: audit
For the financial year ending 31st December 2026, it is the government’s intention that the thresholds for whether a PCC’s accounts should be audited or independently examined will be:-
Total Income up to £500,000: independent examination
Total income £500,000 to £1,500,000 or gross assets up to £5m: independent examination by a qualified examiner
Total income £500,000 to £1,500,000 or gross assets over £5m: audit
Total income over £1,500,000: audit
If a PCC is struggling to find an independent examiner, we would always recommend that they seek help from others in their area or from a local firm of accountants. The fee should be negotiated with the individual firm as there are many factors which will affect the cost.
ACIE (The Association of Charity Independent Examiners) hold a list of members who are willing to undertake independent examination of charity accounts. Follow this link to their website Association of Charity Independent Examiners - Find an IE in England.
Please ensure that the independent examination report follows the template from the Charity Commission and is attached to the financial statements to which it relates - Independent_examiner_s_report_template_R_P_accounts_Oct_2018.pdf
If the PCC has adopted accruals accounting and is following the Charity Sorp (FRS102), the Independent examination report should be based on this template Independent_Examiner_s_report_template_SORP__FRS_102__non-company_Oct_2018__1___2_.doc
Chapter 11 of the PCC Accountability guide provides guidance for PCCs on appointing and working with an Independent Examiner - Chapter 11 | The Church of England.
Submitting your PCC report and accounts to the diocese
The trustees annual report and accounts should be submitted to the diocese each year following their approval by the PCC and within 28 days of your APCM. Please ensure to submit a full set of accounts, including:
- a narrative report of the accounts;
- the receipts and payments account / SOFA;
- the statement of assets and liabilities;
- the independent examiner's / audit report.
We request that accounts should be submitted electronically wherever possible and sent via email to the finance department. Alternatively, paper copies should be sent to our usual address: ODBF, Church House Oxford, Langford Locks, Kidlington OX5 1GF.
PCC accountability and the role of treasurer
The PCC is responsible for all parish finance, its management and control, including the appointment of a treasurer. The positive working relationship between treasurer and PCC is essential to ensure accountability. Treasurers should regularly report to their PCC on the finances to ensure the trustees are aware of the financial position of the charity at all times.
PCCs should make sure that they have transparent systems in place which ensure that financial records are fully available to the Standing Committee; that those taking on the role of treasurer are known to the church community and that claims and payments being made are done with the full knowledge of the standing committee.
For further guidance on financial controls please visit:
Have you submitted your parish finance return?
To complete your year-end accounting procedures, please ensure that you have also completed your parish finance return via the National Church's Parish Returns Online system. The deadline to submit these is normally 31 May each year.
Please visit our Parish Returns page for more information on how to do this and why this is so important.
For assistance with using this system contact the Diocesan Parish Returns Team via email or through the main switchboard on 01865 208 200.
I have already submitted my PCC accounts to the Diocese, do I still need to send in a parish finance return?
Yes please! Although they both record your PCC's financial activity for the year, their two separate formats serve different purposes.
Your annual accounts are part of your PCC's duty to ensure financial accountability. Your parish finance return collects your information in a consistent format with specially designed reporting facilities. This provides the diocese and the National Church with a clearer understanding of your parish context so that we can all support you more effectively.