In addition to your own annual report and accounts, you will need to provide a report from someone outside the PCC to ensure that you have complied with the Charities Act.
Each year your Annual Parochial Church Meeting (APCM), with guidance from the PCC, must appoint an Independent Examiner, someone independent of the Trustees of the church (i.e. the PCC members and their families), to examine the annual accounts and offer an opinion on those accounts.
To give good advice the PCC needs to understand what the Independent Examiner is expected to do, what information they need to do it and what they will report on. It is important for the PCC to give enough time to finding the right person for the job.
Sometimes this is referred to as an 'audit' but this is not usually the correct tern as only churches with an income in excess of £1,000,000 are required to have a formal audit of their accounts.
Independent Examination is a less intensive form of financial examination for charities with an annual income below £1,000,000. If your PCC's total annual income is between £250,000 and £1,000,000, your Independent Examiner must hold specific qualifications and registrations defined within the Charities Act.
It is also a legal requirement that the formal Independent Examiner's report references the correct legislation.