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Account examination thresholds

The way in which you prepare the PCC’s annual accounts, and the level at which they have to be examined each year, is dependent on the gross income of your parish.

Gross income less that £100,000 per year

The accounts may be produced on the Receipts and Payments basis.

The accounts must be examined by an Independent Examiner. This person does not need to be a qualified accountant but should be someone who understands church accounting practices. Chapter 10 of “The Charities Act 1993 and the PCC” 3rd edition provides some guidance on the selection of an Independent Examiner.

Gross income more than £100,000 but less than £250,000

The accounts may be produced on a Receipts and Payments basis.

Accounts for years ending prior to December 2010 with an income over £100,000 had to be done on an accruals basis. It is recommended by the Charity Commission that if you were doing your accounts on this basis then you should continue to do so.

The accounts must be examined buy an Independent Examiner. This person does not need to be a qualified accountant but should be someone who understands church accounting practices.

Gross income over £250,000 but less than £500,000

Your accounts must be prepared on an accruals basis. Examples can be found in chapters 8 &14 of “The Charities Act 1993 and the PCC” 3rd edition.

The Accounts must be independently examined as before but the person carrying out the examination must be a qualified accountant or a member of the Association of Independent Charity Examiners.

Gross income over £500,000 or assets over £3.26 million and income of over £250,000

The accounts must be prepared on an accruals basis.

They must be fully audited by a qualified auditor.

Independent examiners and auditors

If you are in need of, or wish to change your Independent Examiner or Auditor please contact your Area Finance Adviser who will be able to supply you with details of those that do this work for other parishes in your Area.

Further Guidance

Further guidance to the preparation of accounts and their examination requirements can be found on the Parish Resources website or on the Charity Commission website.

Further information regarding the duties of an Independent Examiner and the comparison between examination and full audit can be found in chapter 14 of “The Charities Act 1993 and the PCC” 3rd edition.

N.B. The accounting thresholds have changed since this edition, and the thresholds mentioned above should be used.


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