An independent examination can be carried out by any person who:

  • Is Independent – which means that the examiner is not influenced, or perceived to be influenced, by close personal relationships with PCC members (as trustees of the charity), or by day-to-day involvement in the administration of the church. The examiner can be a church member; and
  • Has the Necessary Knowledge and Experience – the PCC must believe that the examiner has the requisite ability and practical experience to carry out a competent examination. For PCCs with income above £250,000, the examiner must be qualified, i.e., a member of a specified professional body.

The examiner can help to prepare the PCC’s accounts, provided that the accounting records have been maintained by another person, and the examiner has had no direct involvement in the day-to-day management or administration of the church.

Independence

There are a variety of circumstances in which the examiner might not be perceived as being sufficiently independent, including the following:

  • Having a close relationship with a PCC member, such as being a close relative or business partner of a PCC member.
  • Having served on a PCC finance committee or fundraising committee during the year.
  • Being dependent as a beneficiary of the church.
  • Being a material donor to the church.
  • Having accepted hospitality or gifts from the church or PCC members.

Knowledge, Experience and Professional Qualifications

Necessary knowledge and experience is likely to include the following:

  • The examiner needs some familiarity with basic principles of fund accounting, the responsibilities of trustees, and the PCC’s constitution.
  • For receipts and payments accounts, a person with financial awareness and numeracy skills should have the requisite ability.
  • For accruals accounts, the examiner should have a good understanding of accountancy principles, accounting standards, and knowledge of the applicable SORP (Statement of Recommended Practice/FRS102).

For churches with income above £250,000, the examiner must be a member of one of the following bodies:

  • Institute of Chartered Accountants in England and Wales
  • Institute of Chartered Accountants of Scotland
  • Institute of Chartered Accountants in Ireland
  • Association of Chartered Certified Accountants
  • Association of Authorised Public Accountants
  • Association of Accounting Technicians
  • Association of International Accountants
  • Chartered Institute of Management Accountants
  • Institute of Chartered Secretaries and Administrators
  • Chartered Institute of Public Finance and Accountancy
  • Fellow of the Association of Charity Independent Examiners
  • Institute of Financial Accountants
  • Certified Public Accountants Association