The Annual Report

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, therefore SORP (The Charities Statement of Recommended Practice) 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 (Part 9 Rule M5) 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.

Preparing the Trustees’ Annual Report

The PCC Accountability Guide (Chapter 3) is a useful resource to support the preparation of a written Annual Report of Trustees, ensuring it is compliant with your PCC’s legal obligations as a charity.

The Trustees’ Annual Report will usually be drafted by the secretary and the treasurer of the PCC, but some PCCs may wish to involve others. Exeter Diocese have produced useful examples of compliant annual reports.

Adopting the report

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.

Who else will need a copy

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.

You will need to send a copy to your diocese within 28 days of the last possible day for an APCM (31 May). The process for this can vary between dioceses, with many sending instructions out from January onwards to PCC Secretaries.

If your PCC is registered with the Charity Commission, then you will need to submit a copy (PDF) as part of your Annual Returns.