A crucial law for the reform of the Curia arrives: financial managementThe Secretary of State will no longer manage financial and real estate assets.Vatican finances: how they work and what are their organs?One of the areas in which the reform of the Vatican organizations has been most involved is that of the financial management institutions of the Holy See.
Following the reform instituted with the Praedicate EvangeliumThe Holy See has liquidated most of the previous institutions in this area, creating five new ones and reforming the tasks and management of the Administration of the Patrimony of the Apostolic See.
After Predicate EvangeliumThe number of economic agencies of the Holy See is six. And all of them, except for the Administration of the Patrimony of the Apostolic See (APSA), are of recent creation.
1st Economic Affairs Council
It was instituted in 2014 by Motu Proprio Fidelis Dispensator et prudens. Its main mission is to orient and guide the economic strategy of the Holy See in order to ensure that it is managed "in the light of the social doctrine of the Church, following the best recognized international practices in the field of public administration" (art. 205 §2 EP).
To this end, the Council proposes to the Pope the approval of policies and guidelines that ensure prudent and efficient management of human, financial and material resources, reducing unnecessary risks and seeking maximum cost-effectiveness for the fulfillment of the intended purposes.
It is composed of fifteen members: eight are chosen from among Cardinals and Bishops representing the universality of the Church and seven are lay people, chosen from among experts of various nationalities. The law provides for meetings to be held at least four times a year.
As part of its strategic task the Council verifies the consolidated budgets and balance sheets before they are approved by the Roman Pontiff; it determines the criteria, including that of value, for acts of alienation, purchase or extraordinary administration that require the approval of the Secretariat for Economic Affairs to be validly carried out; it examines the reports of the Secretariat, of the Auditor General, of the bodies and entities subject to its supervision (including the IOR) ... And when it deems it necessary, it can request relevant information from the Authority for Supervision and Financial Information (ASIF).
2nd Secretariat of Economic Affairs
Exercises the function of papal secretariat in economic and financial matters (art. 212 EP). The qualifier papal identifies this body as particularly close to the Roman Pontiff, to whom it answers directly. It was also instituted in 2014.
The Secretariat is primarily responsible for the control and supervision of the economic activity of the institutions that are part of the Holy See or closely related to it, so that it is carried out according to the programs proposed by the Council.
The trend is for more and more institutions to come under its control. In fact, in the Holy See's 2022 budget it can be seen that the consolidated perimeter has increased compared to that of the previous year, including new entities to be monitored.
In 2022, the number of entities under the Secretariat's control will be 90, 30 more than in 2021. By expanding the perimeter, a more complete and global vision of the economic situation of the Holy See is provided; and, the greater the visibility, the greater the transparency of its results.
The Secretariat is divided into two functional areas: one for economic and financial control and the other for administrative control. It is responsible for drawing up the economic guidelines and programs to be implemented by the institutions; it prepares the annual budget of the Holy See and verifies its compliance; it draws up the consolidated annual balance sheet from the individual balance sheets; it authorizes acts of alienation, purchase or extraordinary administration; it evaluates the patrimonial and financial risks of economic management and proposes corrective actions.
The Human Resources Department reports to the Secretariat and, as of 2020, its responsibility also extends to the St. Peter's obolus and other papal funds. In November 2022 Pope Francis has appointed a layman, economist Maximino Caballero, as Prefect of the Secretariat.
3º Administration of the Patrimony of the Apostolic See (APSA)
The APSA is responsible for the administration and management of the patrimony of the Holy See. It must not only conserve it, but improve it and make it profitable in order to provide the necessary resources for the Roman Curia to fulfill its universal mission.
The APSA is intended to be the body that centralizes the management of assets under the control of the Secretariat of Economic Affairs, thus avoiding parallel administrations that manage assets without oversight.
The patrimony of the Holy See consists of both productive real estate (rented houses and apartments that generate income) and unproductive real estate (palaces that serve as the seat of curial dicasteries, universities and colleges). It also includes investment funds, bank accounts and other financial securities.
Its president is assisted by a secretary and a council. After the reform, the members of the council can be "cardinals, bishops, priests and laymen" (art. 221 §1 EP). Therefore, these offices are no longer reserved only to ecclesiastics.
It is divided into three functional areas. The real estate area is in charge of managing the properties concentrated mainly in Rome and Castelgandolfo, as well as properties in other countries such as England, France and Switzerland, which are managed through intermediate companies following local regulations.
The area of financial affairs, or securities management, deals with the investment of funds and other financial securities, seeking to generate the best profitability. And thirdly, the service area includes the accounting offices, purchasing, legal advice, pilgrimage to San Pedro, etc.
4th Office of the Auditor General
This Office has been responsible, since 2014, for the review of the consolidated balance sheet of the Holy See. To this end, it carries out a technical control - the well-known accounting audits - on the annual balance sheets of the various curial institutions and bodies linked to the Holy See that converge in the consolidated balance sheet.
The new statute of 2019 provides for the Office to act as an anti-corruption Authority, in order to detect suspicions of fraud in the destination of financial resources, in the awarding of contracts or in disposals. It can initiate audits at the request of the Council, of the Secretariat or of the heads of the bodies under the Council's competence; but they can also be initiated ex officio by the Auditor General, who will previously inform the Cardinal Coordinator of the Council, stating the reasons. In any case, the identity of the complainant is protected and cannot be revealed, except to the judicial authorities by reasoned decision.
If the audit reveals criminal indications, the Auditor General shall inform the judicial authorities of the Vatican, who may decide whether to initiate proceedings before the competent court.
The auditors working in the Office are professionals in this field, some with more than twenty years of experience in international companies.
5th Committee on Reserved Matters
It was created in 2020 and is responsible for authorizing any legal, economic or financial act that, for the good of the Church or of private individuals, must be covered by secrecy and removed from the control of the competent bodies.
The Commission, according to its own statute, is composed of a president, secretary, and some other members appointed for five years by the Roman Pontiff.
6th Investment Committee
In 2019, in order to prepare valid instruments for investment policy, Pope Francis determined the creation of this body. Its mission is to guarantee the ethical appropriateness of the Holy See's movable investments according to the social doctrine of the Church and, at the same time, to ensure their profitability.
Its members are appointed for five years and include high-level professionals. The Committee is competent only for investments in securities, since real estate is managed and controlled by the entities that own them.
Faculty of Canon Law. Catholic University of Valencia San Vicente Mártir.
