VATICAN CITY
Vatican Information Service
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).
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