Holy See Posts Deficit As Staff Cost Offset Asset-value Increase

By Lorenzo Totaro
The Bloomberg
July 16, 2015

http://www.bloomberg.com/news/articles/2015-07-16/holy-see-posts-deficit-as-staff-cost-offset-asset-value-increase

Pope Francis. Photographer: Alberto Pizzoli/AFP via Getty Images

The Holy See, the Vatican’s central administration, posted a deficit of 25.6 million euros ($27.9 million) last year as the cost of staff more than offset the increase in the value of assets.

Last year’s shortfall follows a 24.5 million-euro deficit in 2013, the Holy See said Thursday in a statement. It added that making comparisons with the previous year is “difficult” due to the inclusion of “a number of closing entries” as part of a transition to a new accounting standard.

“The budgets indicate the deficits experienced in recent years are likely to continue in 2015,” the statement also said, adding the Holy See’s budget includes costs for total staffing of 2,880 in 64 “entities.”

The Vatican, home to Roman Catholic Church leader Pope Francis, is located in central Rome near the Tiber River. The Vatican Governorate, the institution that runs Vatican City and its support offices, had in 2014 a surplus of 63.5 million euros, up from 33 million euros in the previous year, according to the statement.

The increase in the Governorate’s surplus was “largely due to continued strong revenue from the cultural activities -- especially the Museums -- and favorable movements in investments,” the statement said.