Have you sent in your accounts and other returns? Covid-19 update
We would encourage parishes to submit returns by the 15 June date where 2019 financial statements have been prepared, audited or independently examined by that date, and as soon as possible after that. Many parishes would already have done this and it would only be necessary to update the return if there were material changes between the financial statements as originally audited or independently examined and those subsequently adopted by the PCC for presentation to the APCM, or those adopted by the APCM. It will still be possible to make amendments after the submission deadline by emailing the finance team.
To summarise: this means that once your 2019 accounts are in order, you need not wait for the APCM to submit your financial returns.
We appreciate that parishes have been considerably affected by the traumatic events surrounding COVID-19, but where the numbers are there, and not dependent on face to face contact to collate and submit, it’s important they are brought together as soon as possible so that we can get the earliest possible insight and overview into what may be a challenging financial climate.
Other forms to be submitted are:
- Statistics for Mission (or complete online) – due by the end of January – to check, go to the Finance Forms & Returns page and download the ‘Record of returns’ at the bottom of that page
- Parish Survey form (for Parish Share assessment) – due by 30 May – if this is not received your Parish Share may be assessed by the Scrutiny Group
Setting out PCC Annual Report and Accounts
Providing the gross income of your PCC is less than £250,000 you can choose a simpler form of accounting – the ‘Receipts and Payments’ basis. This focuses on the cash movements in and out of the PCC’s bank accounts during the financial year.
There is detailed guidance available from the National Church on producing Receipts and Payments Accounts (also Accrual Accounts). Their helpful R&P guide is reproduced below. This will help you produce three of the four reports within the PCC Annual Report and Accounts: Trustees’ Report, Receipts and Payments Account, Statement of Assets and Liabilities. An example PCC Annual Report and Accounts on the Receipts and Payments basis is also provided below.
The fourth report required is the Independent Examiner’s Report. An Independent Examiner’s Report is available below. Any PCC which is an excepted charity (annual income less than £250,000) rather than a registered charity should put the following text in the charity number box: SI 1996, No. 180.
A checklist to help you send your completed annual accounts and finance returns to the Diocesan Office may be downloaded from the bottom of this page.
More than one church in the parish?
We have discovered that a number of parishes with more than one church/chapel have not been correctly completing the PCC reporting requirements. A PCC is a legal entity and must prepare an Annual Report and Accounts. In some cases, we are receiving separate sets of accounts from each church in the parish. Please check if this applies to you.
If you prepare Receipts and Payments accounts, you can include separate sheets with Receipts and Payments accounts for each account with a single Statement of Assets and the annual report should be a report of all activities of all churches.
If you prepare Accruals accounts, you should prepare a single SOFA and Balance Sheet which consolidates the transactions/funds of all churches. You should separately identify each church’s unrestricted and restricted funds in the notes to the accounts.