VATICAN INFORMATION SERVICE   
   YEAR XXII - # 133   
   DATE 16-07-2015   
      
   Summary:   
   - Consolidated statements for the Holy See and financial statements for the   
   Governorate of Vatican City State   
      
   ___________________________________________________________   
      
    Consolidated statements for the Holy See and financial statements for the   
   Governorate of Vatican City State   
    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.   
      
   ___________________________________________________________   
      
   For more information and to search for documents refer to the site:   
   www.visnews.org and www.vatican.va   
      
   Copyright (VIS):  the news contained in the services of the Vatican   
   Information Service may be reproduced wholly or partially by quoting   
   the source:  V. I. S. - Vatican Information Service.   
   http://www.vatican.va/news_services/press/vis/vis_en.html   
      
   --- MPost/386 v1.21   
    * Origin: Sursum Corda! BBS=Huntsville AL=bbs.sursum-corda.com (1:396/45)