Treasurers > Reporting and Accounting > Audit and Independent Examination?

Independent Examination and Audit

All PCCs below the audit threshold (currently £250,000) may choose to have their financial statements independently examined rather than audited. A major donor or grant maker may require the financial statements to be audited even though an independent examination might otherwise have been chosen. An audit is a more onerous form of scrutiny and must be carried out by a registered auditor but an auditor can be asked to act as an examiner. 

PCCs who can choose to prepare their financial statements on the R & P basis should normally choose independent examination rather than audit. Thus the majority of PCC's will have their accounts independently examined, rather than audited. (To check what is included in the calculation of  income and expenditure click here.)

Once a PCC has exceeded the statutory gross income or total expenditure audit threshold of £250,000, it will need to have its accounts audited for the year in which the threshold is exceeded and for the following two years, even if the threshold is not exceeded in those two years. PCCs should therefore check their statutory gross income and total expenditure figures over the two previous years in order to ascertain whether the threshold of £250,000 has been exceeded for either income or expenditure in any of the three years.

What does the PCC have to do?

A suitable examiner has to be appointed by the Annual Parochial Church Meeting (APCM). The PCC will have to consider carefully the suitability of a prospective independent examiner in good time to guide the meeting in its appointment.

Can an examiner be paid?

The PCC is entitled to pay a reasonable fee to an independent examiner for their services. If the services of a competent examiner cannot be obtained on a voluntary basis, the PCC should be prepared to pay a modest fee, which is a proper charge on its funds. The PCC should not be pressured into appointing a voluntary person just because they will do the work free of charge. It must be satisfied that they have the requisite ability and experience.