PCC Accountability
Charities have a range of Governing Documents. As Parochial Church Councils (PCCs) are charities, they are governed by two pieces of Church of England legislation, known as Measures:
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The Parochial Church Councils (Powers) Measure 1956 as amended
- This defines the principal function, or purpose, of the PCC as "promoting in the parish the whole mission of the Church". You can find the full text of the PCC Powers Measure in its currently amended form on the Statute Law Database by clicking here.
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The Church Representation Rules (contained in Schedule 3 to the Synodical Government Measure 1969 as amended)
PCC Accountability: The Charities Act 2011 and the PCC
The 5th Edition of PCC Accountability (incorporating SORP 2015) was published by Church House Publishing in February 2017 and is available to order from Church House Publishing, for Kindle, or view the publication online.
Introduction to Charity Accounting
Charities make a major contribution to society by funding or supporting community work that, were it not for them, would often fall outside the scope of government responsibility. Consequently, governments have a legitimate interest in all charities, ensuring that donated money is spent in accordance with the charity's aims and is not wasted, thereby maintaining public confidence in charitable giving.
To achieve this, successive UK governments have developed charity law over more than 400 years, progressively increasing the responsibilities of charity trustees for the work and finances of their organisations. PCC members are charity trustees. The Charities Act 2011 defines charities as organisations that aim to provide 'public benefit' in one or more charitable areas or 'purposes'. It also reinforces the Charity Commission's legal powers to support and regulate charities.
The Charity Commission has produced the Charities SORP ('Accounting and Reporting by Charities: Statement of Recommended Practice') to provide clear guidelines on what information to keep and what reports to produce in order to meet legal obligations. The Church of England has adopted the SORP as its standard basis for the annual financial reporting of parishes, enabling parishes to provide consistent information to both the government (for the general public) and the wider Church.
What does this mean for you as a parish?
As PCC members, you are the charity trustees of your parish. You therefore need to understand the sources of the church's income, how it is spent, and the reasons for expenditure. To provide a clear account of how money has been received and spent, each parish must produce the reports required by law.
These reports and accounts help parishes to demonstrate how donated money supports the mission of the Church. They also ensure that money given for specific purposes, such as parish operations, youth work, or building projects, is used accordingly. PCC members are responsible for the proper management of church finances and for providing clear and comprehensive information about all monies belonging to the church.
Training and templates
Training:
- Free online training sessions on a range of topics from WYCAS (West Yorkshire Community Accounting Services)
- Training from £10pp on a range of topics provided by ACAT (Association of Church Accountants and Treasurers)
- 1 to 1 sessions with our Parish Support Accountant, bookable via this link
Accounts templates:
WYCAS Cashbook template - if you'd like to use the standard Return of Parish Finance categories within this template and need help setting it up please contact us at reosurcingparishes@leeds.anglican.org
A full set of model accounts and annual report
Model accounts sheet on excel
An independent examination statement