Verghese V Joseph –
The 2023 balance sheet report from the Administration of the Patrimony of the Apostolic See (APSA) of the Roman Curia which was published on Monday is a fascinating read. According to the report, without influencing the Holy See’s assets or the sale of institutional facilities, APSA raised its assets by 7.9 million euros and provided 37.9 million euros to the Pope’s mission.
According to the report, the administration invested its money in foreign stocks, fixed-income securities, and other financial assets. With the goal of spreading risk and diversifying investments to maximise return within the Investment Committee’s mandate, it offered financial solutions, capital markets access, and advice to the Dicasteries of the Curia and other Holy See organisations.
Pope Paul VI established APSA as part of his broader reform of the Roman Curia in the apostolic constitution Regimini Ecclesiae Universae issued on 15 August 1967.
With its vast property holdings, world-class medical centres, educational establishments, social service initiatives, and varied financial resources, the Catholic Church in India is a powerful force in both the spiritual and socioeconomic spheres of the nation. This necessitates more transparency and accountability from the church in terms of finances and asset management. Could the Indian church give its asset management to an organisation like the APSA, which handles asset management in a more transparent and professional manner?
For instance, the Catholic Church’s land ownership in India has not been without challenges. Legal disputes over ownership and leases, as well as allegations of impropriety, have raised concerns about the Church’s transparency in asset management. The recent case involving Cardinal George Alencherry, where the Kerala High Court ruled against the cardinal’s claims of exclusive rights over diocesan properties, illustrates the legal complexities surrounding the Church’s assets. This ruling may necessitate a reevaluation of how the Church manages its resources and interacts with civil authorities.
This need for transparency resonates with the reforms initiated by Pope Francis regarding the administration of the Holy See’s patrimony, particularly through the APSA.
In India, with over 19.9 million Catholic stakeholders, comprising around 1.55% of the total population contributing to various church initiatives and upkeep, the Catholic Church’s financial practices and asset management have been a topic of discussion, especially in light of the Church’s role in providing education, healthcare, and social services.
The recent reforms by Pope Francis emphasise the need for a credible and trustworthy administration within the Church. Bishop Nunzio Galantino, the President of APSA, has articulated that the goal of these reforms is to ensure an exemplary style of administration that aligns with the Church’s mission, thereby enhancing its credibility in proclaiming the Gospel.
Financial transparency and accountability are other critical aspects in maintaining the Church’s reputation and ensuring that its financial practices align with its mission. The Church’s credibility is directly linked to its financial integrity; a lack of transparency could hinder its ability to reach out to communities and fulfill its evangelization mission. The Church’s internal structures, including finance councils at both diocesan and parish levels, are designed to promote accountability. These councils are tasked with preparing budgets, monitoring expenditures, and ensuring adherence to financial regulations as outlined in canon law.
Despite these structures, there have been concerns regarding the adequacy of financial controls and the understanding of financial accountability among church leaders.
A study conducted at the Holy Spirit Catholic Parish in Zambia highlighted that many leaders did not fully grasp the concept of financial accountability, leading to laxity in adherence to budgets and accounting principles. This situation underscores the need for training and better financial management practices within the Church.
APSA’s recent financial reports are part of a broader effort to enhance transparency in the administration of the Church’s assets. The reforms initiated by Pope Francis have focused on establishing robust financial management practices that reflect the Church’s commitment to integrity. The financial oversight provided by APSA aims to safeguard the Church’s assets and ensure that they are used effectively for the Church’s mission.
Bishop Galantino has emphasized that the administration of the Church’s patrimony must be conducted with a sense of responsibility and in accordance with civil laws governing social and economic life. This alignment with legal standards is crucial for maintaining the Church’s credibility and its ability to engage with the broader society.
Best Practices for Financial Management
To enhance financial accountability, the Catholic Church in India can adopt several best practices:
Uploading of financial Statements: To begin with, a simple act of uploading audited financial reports on respective Diocesan websites can be a starter.
Training and Education: Implementing comprehensive training programs for church leaders on financial management and accountability can help improve understanding and adherence to best practices.
Strengthening Internal Controls: Establishing robust internal control systems that include regular audits and evaluations of financial practices can reduce the risk of fraud and misuse of funds.
Transparent Reporting: Regularly publishing financial reports that are accessible to the laity can foster trust and demonstrate the Church’s commitment to transparency.
Engagement with Civil Authorities: Collaborating with government bodies to ensure compliance with legal standards can enhance the Church’s credibility and mitigate legal challenges.
Community Involvement: Encouraging lay participation in financial decision-making processes can promote accountability and ensure that the Church’s financial practices align with the needs of the community.
The need for financial and asset management accountability within the Indian Catholic Church is paramount, especially in light of the extensive resources it manages and the social responsibilities it undertakes. The reforms initiated by Pope Francis and the emphasis on transparency in the administration of the Holy See’s patrimony provide a framework for enhancing accountability within the Church.
By adopting best practices in financial management, the Church can strengthen its credibility and ensure that it continues to fulfill its mission effectively. The challenges it faces in managing its assets must be addressed through a commitment to transparency, adherence to legal standards, and active engagement with the community. Ultimately, a trustworthy and credible administration will not only enhance the Church’s reputation but also facilitate its mission of evangelization and service to society.
The author worked as a senior financial journalist with The Economic Times and The Financial Express
This article is indeed an “eye-opener” to the Indian Church. Well, from the time of assuming his office, Pope Francis has been setting up new trends at various levels. Through his writings, speeches and simple living he has been teaching values of simplicity, responsibility, transparency, accountability and participation etc. Are his teachings accepted with a spirit of openness by the Indian Catholic clergy? is a million-dollar question. APSA and the practical suggestions of the author of this article must serve as a basis for a sincere and serious introspection for the clergy as well as laity in India.