Church goes into surplus

An unexpected increase in the APS Bank dividends and a drop in expenses of a capital nature and maintenance of about Lm400,000 have given the Archdiocese of Malta a favourable balance of Lm187,000 at the end of the financial pastoral year.

This marks another improvement in the Church's financial situation, after a net deficit of Lm130,000 registered in 2003, which was narrower than the Lm555,000 net deficit of the previous year.

The Archdiocese holds 83 per cent of the issued share capital of APS.

Financial controller Robert Agius said the Church's biggest expense was that of Lm4,746,733 to pay the salaries of around 1,000 persons it employs. Of this amount Lm1,150,692 goes into remuneration to the clergy, who now number around 300.

The biggest expense following salaries was that of the work in the several Church entities and in the administration of these entities. This amounted to Lm3,400,192. The diocese also paid Lm311,848 in taxes.

People's contributions during collections in church, homes and other entities brought in Lm3,767,646 - Lm19,739 less than the amount collected the previous year.

The sum total of the collections amounted to 43 per cent of all Church income. Other income was from investments the Archdiocese had, which amounted to Lm2,630,080.

The paid by residents in Church-run homes drew Lm932,171, publications, jobbing and advertising sales made Lm446,752 and other income including donations, fund raising, payments for sacramental services, the sale of graves and income from property amounted to Lm988,000.

When it came to expenditure, the archdiocese paid Lm380,000 in subsidies to certain entities including homes for children and the elderly (Lm183,000), the foundation for theological studies (Lm67,000) and the communications media (Lm130,000). These subsidies amounted to Lm57,000 more than in the previous year.

In 2004, the Dar tal-Providenza again had a deficit of Lm305,000, an increase of Lm97,000 over the previous year, while income over 2003 dropped by Lm162,000. The home's income had not even been enough to cover salaries. Two substantial donations were made by RTK (Lm107,000) and Kerygma (Lm111,000).

The accumulated funds of 2001, when the home had received a substantial inheritance, made good for the deficit. Since 2001 the home was inheriting less and it was starting to encounter difficulties.

The aggregated bills of operations of the 53 diocesan parishes amounted to Lm2,142,000. The biggest expense (Lm743,000) was that of maintenance, repairs and equipment.

The expense for liturgical celebrations was of Lm113,000. Lm160,000 was spent on parish feasts while the income from these feasts amounted to Lm154,000.

Mr Agius said that as at December 31, the Archdiocese was in dispute with the Commissioner of Inland Revenue in respect of tax assessments amounting to Lm1,855,000.

No provision was made in the accounts in respect of this matter, as the grounds on which the assessments were raised were being disputed. This contingent liability arises out of assessments relating to the financial years 1991 to 1997.

The assessments entitle the Church's finance section to tax credits and therefore the amount payable, if any, would be significantly less than the amount mentioned.