The Curia reported today that its net surplus dropped sharply last year but it managed to stay in the black due to cost cutting.

It saw income decline to €6.4 million last year from €7.9m the previous year as revenue from interest dropped to €3.9m from €5.3m in 2014 and a dividend received from APS Bank in 2014 was not repeated. Revenue from donations and collections increased to €223,020 from €150,378 in 2014 but was not enough to make up for the shortfall.

Expenditure went down by €500,000 to €6.2m, with remuneration to clergy and lay workers accounting for two-thirds of the total outlay. Operational costs dropped by 45% to €378,609 after bad debts were recovered.

Taxation amounted to €1.1 million. 

Michael Pace Ross, Curia Administrative Secretary, Robert Agius, Financial Controller and Rose-Anne Abdilla, Assistant Financial Controller, explained at a press conference that although income was higher than expenditure, final results were influenced by the payment of subsidies to ecclesiastical entities (€844,957), which declined by a quarter, and unrealised gains on exchange.

Children’s homes did not require subsidies as they benefited from inheritance income from benefactors, while most of the other entities reduced their dependence on Curia subventions.

The net loss after subsidies was €622.810.

However the archdiocese last year recorded substantial unrealised gains on exchange for the second year running due to the strength of the Pound Sterling and the US dollar against the euro, resulting in an overall net surplus of €172,365, down from €1.05m in 2014.