Vatican City, July 2015 (VIS) – At
the Council for the Economy meeting on 14 July 2015, Cardinal Pell
and the staff from the Secretariat for the Economy presented the
Consolidated Statements for the Holy See and the Financial Statements
for the Governorate. The Statements had been prepared by the
Prefecture for Economic Affairs and reviewed and verified by the
Secretariat, the Audit Committee of the Council and the External
Auditor.
It was noted that 2014 was a year of
transition to new Financial Management policies based on
International Public Sector Accounting Standards (IPSAS). The former
accounting principles and consolidation perimeter (comprising 64 Holy
See entities) were used in preparation of the 2014 Statements.
Managers were however asked to ensure they had included all assets
and liabilities and provide appropriate certification as to
completeness and accuracy. Working with the external auditor, third
party confirmation of balances were requested so that, consistent
with sound audit practice, amounts could be independently verified.
To include all assets and liabilities in the accounts at year end and
to prepare for the new policies, a number of closing entries were
included which make direct comparison with 2013 figures difficult.
Where appropriate relevant points of comparison were provided to the
Council.
The journey of transition to new
policies is progressing well and the Secretariat was pleased to
report high levels of interest and cooperation in the entities. The
2014 Financial Statements reflect an enormous amount of work by staff
in many Holy See entities, particularly in the Prefecture for
Economic Affairs and the Secretariat for the Economy and Council
members expressed their gratitude for the rigorous and professional
work and the strong commitment to implementing the financial reforms
approved by the Holy Father.
The Financial Statements for the Holy
See for 2014 indicate a deficit of 25,621k Euro which is similar to
the deficit of 24.471k Euro reported in the 2013 Statements. Had the
same accounting treatment applied in 2014 been applied in 2013, the
2013 deficit would have been reported as 37,209k Euro. The
improvement in 2014 was largely due to favourable movements in
investments held by the Holy See. The main sources of income in 2014,
in addition to investments, include the contributions made pursuant
to canon 1271 of the Code of Canon Law (21m Euro) and the
contribution from Institute of Works of Religion (50m Euro).
Net assets increased by 939m Euro as
adjustments were made to include all assets and liabilities in the
closing balances for 2014. For the entities included in the
consolidation perimeter, assets previously off the balance sheet
amounted to 1,114m Euro and liabilities amounted to 222m Euro. While
the patrimonial situation in the pension fund was not reflected in
the closing balance sheet, it was reported that the new pension fund
board will be asked to prepare an updated assessment of the overall
situation.
As in previous years, the most
significant expense included in the Holy See Financial Statements is
the cost of staff (126.6m Euro) and the statements indicate a total
of 2880 personnel in the 64 Holy See entities included in the
consolidation.
The financial statements for the
Governorate for 2014 indicate a surplus of 63,519k Euro which is a
significant improvement on the 2013 surplus of 33,042k Euro, largely
due to continued strong revenue from the cultural activities
(especially the Museums) and favourable movements in investments. Net
Assets increased by 63.5m Euro and there were no adjustments
necessary to include additional assets and liabilities in closing
balances for 2014. The Statements indicate a total staff of 1930 in
the Governorate.
Following the meeting of the Council
for the Economy,the Secretariat for the Economy was advised the
Auditor confirmed that a clear audit certificate had been issued for
the Holy See and Governorate Financial Statements.
The Council also received a further
update on the 2015 Budget. The 2015 Budgets were prepared under the
new Financial Management Policies, approved last year by the Holy
Father. The Council in late May received a detailed budget submission
prepared by the Secretariat. The submission highlighted proposed
activities as well as anticipated revenue and expenditure for the
coming year and included specific recommendations for each of the 136
entities on the list, as approved by the Holy Father, who are subject
to control and vigilance of the Council and Secretariat. The Budgets
indicate the deficits experienced in recent years are likely to
continue in 2015.
While rapid progress is being made in
implementing reforms requested by the Holy Father, the complete
transition to the IPSAS is likely to take several years. The 2015
Budgets and the 2015 Statements are the first important steps. From
2015, the Consolidated Statements for the Holy See will include the
new practices and additional entities, as required under the new
Financial Management Policies and the IPSAS Standards.