Treasurers > Reporting and Accounting > The Annual Report

The Annual Report

The requirements

The preparation of a written annual report, like the preparation of the accounts, is the joint responsibility of the whole PCC. It puts all the PCC's financial statements into perspective and relates them to the wider life of the Church. It will review the past year and link financial plans to the vision for the future. For this reason, while it is legally a separate document from the accounts, it provides important accompanying information to the accounts and SORP therefore requires that it should be attached to the accounts whenever a full set of accounts is distributed or otherwise made available.

The Church Representation Rules (Rule 9 (1)(b)) require 'an annual report on the proceedings of the parochial church council and the activities of the parish generally' to be received by the Annual Parochial Church Meeting (APCM). The meeting is then free to discuss it.

This report is quite separate from the statement or address that the incumbent may wish to make to the APCM. The report will usually be drafted by the secretary and the treasurer of the PCC, but some PCCs may wish to involve others in the drafting. It is a significant document in the life of the Church and should be prepared in that light rather than as a chore to be completed.

The PCC must adopt the report before it is presented to the APCM and it must be dated and signed by the chairman of the PCC meeting at which it was adopted. Ideally an early draft should be shown to the PCC, but beware attempting to draft by committee.

The independent examiner or the auditor will need to see at least a draft of the report as a part of their scrutiny of the accounts.  The annual report should be attached to the accounts whenever a full set of accounts is distributed, together with a copy of the audit or independent examination report.

Because the report must be written for the general public as well as for Church members, it has to include information that Church members might take for granted, such as identification of the parish church, how the PCC operates and the names of its members.

The whole report should be wider than this and deal with the main activities of the Church and new developments planned. It will give a flavour of the Church at worship, 'being' as well as 'doing', in pastoral and mission modes, and how it relates to those outside and on the fringes as well as in the congregation.

It is in no one's interest to make the report long and complicated. It is much more likely to be read if it is succinct and to the point. PCCs that have access to computers and desk top publishing facilities will want to make the layout attractive and may wish to include graphs, graphics and photographs.

The Charities SORP

The 2005 revision of the SORP made a number of changes to the annual report which are designed to link more closely the objects, aims, objectives for the year, and activities planned for the year, with the outcomes achieved. Detailed guidance can be found by clicking here.