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CHAPTER-IHI
Financia! Administration in the TFD
I n this chapter, an attempt is made to study the financial administration
in the Tirumala Tirupati Devasthanams (TTD). Since the TTD is a quasi-
government institution, it has to follow the guidelines issued by the Government
of Andhra Pwdesh (AP). The issues discussed include financial administration set
up, accounting system, budgeting, auditing, creation of funds and sale of
properties.
I. Financial Organisation: The financial administration set up of the TTD is
presented in figure 3.1.
Fig 3.1: Financial Administration set up in the TFD
Government V
Board of Trustees
7 *
Executive Officer V
Financial Advisor and Chief Accounts Officer v
Chief Accounts 0@icer 7
Accounts Officers (2) V
Superintendents ( 15) 'v
Senior assistants 'v
Junior assistants
Source: Cclrn~iied from the records of the TTD, Tirupati
1.1. Government: The Government of AP constitutes the Board of Trustees
and appoints Executive Officer (EO) and the Financial Advisor and Chief
Accounts Officer (FACAO) for administering the affairs of the ITD. The TTD
follows the rules and regulations framed by the Government on financial matters
from time to time. The Government approves the budget of the TTD forwarded
to it by the Board of Trustees. It also ratifies re-appropriations, if any. The Local
Fund Audit (LFA) Department of the Government of AP audits the accounts of
the l T D . The Government initiates suitable action on the basis of the audit
report submitted to it.
1.2 Board of Trustees: The financial powers of the Board of Trustecs are as
follows: (i) the Board of Trustees shall manage the properties, funds and affairs
of the TTD; (ii) it has the power to fix fees for any service or ritual connected
with the temple; (iii) it can from time to time decide the tolls to be levied on any
road situated within the Tirumala hill area or road leading to Tirumala; (iv) it
shall demand through a resolution the furnishing of security for a post in the
TTD as the case may be; (v) it has the power to call for such information and
accounts as may be in its opinion necessary for satisfying itself that the TTD
funds are properly maintained and administered; (vi) all properties either
movable or immovable, except cash and offerings made in hundi and in the
office of the TTD, will be given and received only with its permission; (vii) it may
sell or exchange or mortgage any immovable property belonging to the TTD;
(viii) its approval is required to sell movable properties exceeding one lakh; (ix) i t
can write-off amount due to the TTD exceeding Rs.5,000; (x) the jewellery and
other valuables of the temples of the l T D shall be in the joint custody of the
officials specified by it; (xi) approval of budget by it is necessary for forwarding
it to the Government; (xii) on consideration of audit report, it may direct the EO
to take disciplinary action against any officer or servant who is guilty of illegal
expenditure or of loss or waste of money or other property thereof caused by
misconduct, collusion, fraud or breach of trust; and (xiii) it may also direct the
authorities concerned to launch criminal proceedings in deserving cases.
1.3 Executive OfFicer: The financial functions of the €0 are as follows: (i) he
is responsible for the proper maintenance and custody of records and properties
of the TTD; (ii) he shall fix wages for all the employees of the TTD other than
those on time scale of pay; (iii) he has the power to authorise any officer to
function as cheque drawing and disbursiilg officer; (iv) he shall furnish to the
Comrnissioner a return of annual income for the previous year after getting the
approval from the Board of Trustees for making contribution to the Endowment
Administration fund; (v) the EO has to consult the FACAO on all or any of the
matters relating to the expenditure of the TTD, on work bills, contracts,
investments in banks etc. The €0 may even overrule his advise for reasons to be
recorded in ,,?;citing; (vi) he shall have the power to sell movable properties by
public auction. The terms and conditions of the sale are decided by him; (vii) he,
with the prior permission of the Board of Trustees, can arrange for making of
any jewel or vahanarn for the use of the TTD; (viii) he can permit the leasing of
immovable property of the TTD, period of lease, terms and conditions, security
to be furnished by the lessee etc; (ix) he has the power to write off the amount
due to the TTD not exceeding Rs.5,000 in each case at a time; (x) after the
receipt of budget from the FACAO, he has to place it before the Board of
Trustees for its approval; and (xi) after the receipt of a copy of audit report, he
has to get it scrutinised by the FACAO and place it before the Board of Trustees.
1.4 Financial Advisor and Chief Accounts OfTicer: The FACAO is
appointed by the State Government. All matters connected with finance and
accounts are looked after by the FACAO. He is incharge of the finances of the
l T D . He is under the direct control of the EO. The post of FACAO was created in
1983. The FACAO heads the accounts department. The department is divided
into a number of sections viz., accounts and establishment, cheque writing,
advances and investments, audit objections, general provident fund, bill passing,
compilation, loans and computer. Each section is under the charge of a
superintendent. All the superintendents are under the control of two Accounts
Officers. The Accounts Officers are accountable to the Chief Accounts Officer
who, in turn, is responsible to the FACAO.
1.4.11 ~ppointment': The person appointed as FACAO shall be a person
professing Hindu religion. He shall be a whole time officer of the TTD and shall
not undertake any work, which is not connected with his office, without the
permission of the Board of Trustees. He shall be paid out of the funds of the
TTD. His salary may be fixed by the Government from time to time.
1.4.2 Qualifications: (i) a candidate selected for this post should have worked
for not less than 5 years in Indian Audit and Accounts Service or a similar
organisation recognised by the management of the TTD; or (ii) he should have
experience as Head of the Department for at least 5 years or in a post equal to
or higher than that of a Deputy Secretary in the Finance Department of the State
Government or equivalent post; or (iii) experience as Chartered Accountant for
at least 10 years.
1.4.3 Powers and functions: The powers and functions of the FACAO are as
follows: (i) he shall be responsible for keeping accounts of all receipts and
disbursenients for each financial year regularly; (ii) he shall function as pay and
accounts officer as well as the cheque drawing and disbursing officer of the
TTD. On his advise, the EO may authorise any other officer to function as
cheque drawing and disbursing officer; (iii) he shall be responsible for preparing
the annual budget and for spending the same; (iv) he shall be consulted by the
EO on all or any of the matters relating to expenditure in the T D , on wo:k bills,
contracts, investment in banks etc; (v) it shall be the duty of the FACAO to place
before the auditors all accounts, records, correspondence, plans and other
documents relating to the properties of the T D . He shall also furnish them with
such infornisiion as may be relevant to the auditing of accounts and provide the
necessary assistance in this regard; (vi) he shall rectify the defects or
irregularities pointed out by the auditor and prepare a rectification report; (vii)
he shall conduct a physical verification of all the valuable properties of the TTD
like jewellery, vessels, vahanams, stock, furniture etc. in the temples every year;
(viii) he is the custodian of the money received by the TTD subject to the overall
control and orders of the EO; (ix) he shall have the power to withdraw deposits
made in the scheduled banks subject to the overall control and orders of the EO;
(x) he shall constitute the TTD Employees' Pension Fund, Gratuity Fund and
Provident Fund separately and create a trust for the purposes of discharging the
liabilities of the TTD employees; (xi) he shall be responsible for collection of
income whether in cash or kind; (xii) the FACAO or any officer authorised by him
shall grant receipts for items received by the TTD either in cash or kind; and
(xiii) all collections shall be brought into account by him without any delay. No
person other than the FACAO shall be competent to give a valid discharge of any
claim of the institution.
The FACAO can reject the advise of the EO specifying reasons for such
action. Though he is under the control of the EO, he may directly send a r e ~ o f i
to the Government. He can object to any financial decision taken by the EO if it
is not in the interest of the TTD. He should be consulted before writing off any
amount due to the TTD.
2. Accouartiqg system: Sri R. Rajagopalan, Chief Cost Accounts Officer,
Government of India, formulated the new accounting, procedures. The TTD
introduced them with effect from 1.4.1974, It is a double entry system of
accounting. Accounts were decentralised through the new accounting system. All
the TTD institutions were divided into 72 independent accounting units. These
were mainly grouped into 7 departments. Every accounting unit of the TTD
maintains the necessary books of accounts and the related records. For each
accounting unit, there is a separate bank account. Bank accounts are maintained
in separate branches of banks. Each accounting unit of the TTD has a bank
account entitled "Collection Bank Account" and another account entitled
"Disbursement Bank Account" for the purpose of recording the transactions
relating to receipts and payments. The accounting unit of the head office has
more than one Collection Bank Account or Disbursement Bank Account.
2.1 Codification and classification: I n the general ledger, account heads
were codified and classified as far as possible. The general ledger account
numbers, specifically reserved for use of accounting units, are presented in
Table 3.1. A numerical code of 3 digits is assigned to each general
ledger account. The first two digits represent the classification and the third
digit represents its sub-division. Where no sub-division is made in the
classification, the third digit is assigned the number zero. Where further sub-
division of an account is necessary, subsidiary ledgers are prescribed. <
Table 3.1: General Ledger Account Numbers specifically resewed for Accounting Units
/ A c c o u n t i n g unit Account Numbers I
I I
Head office
Tirumala temple Tirurnala choultries
1 Tirurnala general Temples other than those in Tirurnala Tirupati choultries Tirupati general TTD transport TTD press Tirumala canteens Tirupati canteens Educational institutions
010, 037, 038, 039, 051, 221 to 254, 281 to 284, 521 to 525, 548, 549, 551, 552 and 701 to 704 021, 601, 621 and 622 63 1 022, 602, 641, 642, 643 and 684 023 to 031 and 603 to 611 63 2 683 and 685 125,155,185,503,513,518,585 and 652 682 661 to 664 666 and 667 041 to 044,466,671 to 679 and 694
Source: Government of Andra Pradesh, Accounts Manual, Government Central Press, Hydera bad, 1990.
2.2 Subsidiary ledger accounts: The purpose of a subsidiary ledger is to
keep similar accounts in detail while the aggregate of these accounts is
maintained in a control account in the general ledger. A control account is a
general ledger account, the balance of which represents the total of balances o f
accounts in a subsidiary ledger. The subsidiary ledgers of personal accounts
maintained for control accounts is shown in Table 3.2. Subsidiary ledgers
referred to are personal accounts to be opened in the names of persons,
firms, companies etc. A numerical code of 6 digits has been assigned to
each account (person/firm/company) in a subsidiary ledger. The first three
digits will serve the particular accounting unit to which the subsidiary ledger
relates. The next three digits are allotted to individual person/firm/company in
whose narnes accounts are maintained.
Table 3.2: Subsidiary Ledgers of Personal Accounts
Source: As in Table 3.1
The accounting units maintain subsidiary ledgers for general ledger control
accounts as furnished in Table 3.4. This relates to a further sub-division of
general ledger accounts. This is considered necessary for managerial
planning. A trial balace of each subsidiary ledger shall be prepared at the end
of each month. The total shall agree with the corresponding total of control
account.
Name of the subsidiary ledger
Sundry creditors ledger-I Sundry creditors ledger- I1 Non-contributory provident fund ledger Security deposits ledger-I1 Security deposits ledger-I1 Security deposits ledger- 111 Security deposits ledger - I V
General ledger control
accaunt No.
06 1 062 084
091 092 093 094
--
f itle head
Sundry creditors for goods Sundry creditors for expenses Non-contr~butory provident fund contributions - employees Security deposits from contractors Security deposits from suppliers Earnest money deposits Security deposits from staff Advances for acquisition of fixed Advances to suppliers ledger-I1
other than fixed assets Sundry debtors Sundry debtors ledger
- -- -- .----- ..----
Source: As IL Table 3.1
Subsid~ary ledgers shall also be maintained for control accounts as shown in Table 3.3.
Table 3-3: Subsidiary Ledgers for Loans and Advances
General ledger control Account No.
064 065 311 312 313 3 14 325
Title head - Salaries and wages due Unclaimed salaries and wages Loans to employees for the purchase of vehicles Festival advances to employees Pay advance to employees Travelling advances to employees Other advances recoverable
Table 3.4: Subsidiary Ledgers for Impersonal AccounlEs
General ledger Control
account No.
Source: As in Table 3.1.
Title head
Materials issued Repairs and maintenance of vehicles Arjitham receipts of Srivari temple Sale of prasadarns Transport receipts Canteen sales 1
2.3 Books of original entry: The purpose of the books of original entry is
~ c c o v n t i n ~ unit which will maintain subsidiary ledgers
Tirumala temple l T D Transport and Engineering division Tirumala temple
Tirumala temple TTD Transport Tirumala canteen
to record all the necessary information relating to original transactions. The
books of original entry maintained by the accounting units of the TTD are
receipts cash book, payments cash book, purchase day book, transfer-in day
book, transfer-out day book, sales book, material issues book, monthly routine
journal entries book and miscellaneous journal entries book. Each book is self-
balancing. Total of debits will be equal to total of credits. All the books of
original entry, except the monthly routine journal entries book and the
miscellaneous journal entries book, are designed with suitable arrangements for
columns. The individual accounting units should prepare a summary of their
daily transactions relating to each book of original entry and the same should be
forwarded to the data processing centre for further processing and posting in
ledgers. Therefore, the books of original entry are in a loose leaf form. All the
pages in each book are consecutively numbered as and when a new leaf is taken
for recording the transactions. At the end of each financial year, all the leaves
are arranged in numerical sequence of leaf numbers. Vouchers and other
collaterals relating to each book are numbered and filed in numerical sequence.
At the clos2 of the day, all the columns are totalled and the figures are entered
in a loose-leaf summary page called posting sheet. Further, this data contained
in the posting sheet is forwarded to the data processing centre. The various
books of original entry are briefly discussed below.
2.3.1 Receipts cash book: The purpose of receipts cash book is to provide a
complete record of all cash, cheques, rlrafts, money orders, pay orders etc.
received from other accounting units of the TTD. All the receipts are entered in
it and the proceeds are deposited in the bank on the day of receipt. Every
effort is made to see that all cash/bank receipts are promptly recorded in the
n?ontli to which they relate.
2.3.2 Payments cash book: The payments cash book is prepared with a view
to ascertain the disbursements made to other accounting units of the TTD. All
payments are entered in it as and when the payments are made.
2.3.3 Purchase day book: The purchase day book shows a complete record of
all p~~rchases made and their distribution to respective accounts. This book
records the purchases for which trade credit is availed. The bills of vendors are
immediately rzgistered in it. If any cash purchases are made, they are entered
in the payments cash book.
2.3.4 Transfers-in day book: All the supplies received by one accounting
unit from another accounting unit are effected in Transfers-in day book. The
entry is based on the invoice prepared by the supplying unit. The receiving
accounting unit records the invoices of supplying unit in terms of quantity as well
as value.
2.3.5 Transfers-out day book: The purpose of transfers-out day book is to
record the goods supplied by one accounting unit to another accounting unit.
The supplies made by one accounting unit to another accounting unit will be
billed by the despatching unit by which goods have been consigned. The billing
may be on cost basis, on determined rate basis or in a manner prescribed by
the designated officials. The invoices will be prepared in quadruplicate. Two
copies are forwarded to the consignee unit, one copy is sent to the head
quarters of the TTD and the remaining copy is retained for entry in the
transfers-out day book of the despatching unit. On receipt of goods, the
consignee unit records the acknowledgement on one copy and forwards the
same to the head quarters. The head quarters has to match the copy received
from the despatch unit with that of the consignee unit. The invoices for which
matching acknowledgements were not received will represent the goods-in-
transit.
2.3.6 Sales day book: The sales day book records the credit sales to
customers. The transactions involving the goods supplied by one accounting
unit to another accounting unit are excluded from it.
2.3.7 Material issues day book: The material issues day book is maintained
with a view to have a complete record of issue of materials and their distribution
to the respective general ledger accounts. The transactions entered in this book
shall not be recorded in the transfers-out day book. The materials are to be
issued on a proper material requisition. This is the source to make entries in the
material issues day book.
2.3.8 Monthly routine journal entries book: The monthly routine journal
entries book records recurring journal entries of every month. AS far as
possible, entries are pre-planned, printed and only figures are inserted therein,
A full explanation of each entry shall be written beneath that entry in the journal
sheet.
2.3.9 Miscellaneours journal entries book: The miscellaneous journal
entries book is used to record the transactions not covered by other books. All
the entries are supported by proper approved collateral.
2.4 Accounting report: The mass of output of an accounting system should
ultimately be presented in a form of report useful to the management. The
report should summarise all the essential infortnation required by the
management. The accounts department of the TTD prepares the following
repor 1s: (i) ;i ~ l ~ o l ~ l l l l y balatice s l~eel for each accout'lting unit; (ii) a profit and
loss account for each accounting unit for every month; and (iii) a month-wise
consolidated balance sheet and profit and loss account for the TTD as a whole.
Every accounting unit of the l T D prepares its budget in the prescribed form
before the commencement of the financial year. Finally, a master budget will be
prepared for the entire TTD.
3. Budgetary control: Budgetary control is the establishment of budgets
relating to responsibilities of executives to the requirement of a policy and the
comparison of actuals with budgeted results. Budget is a statement prepared
and approved prior to the budget period. It shows the probable receipts and
payments in the following financial year. Like other religious and charitable
organisations, the l T D has its own budgetary control system.
3.1. Budgetary system: Since the TTD is a religious institution, i t follows
performance budgeting. The TTD estimates future income and expenditure on
the basis of its previous performance and prepares budget for the ensuing
financial year.
3.2 Budget Preparation: Every year, the TTD prepares its budget for income
and expenditure. The FACAO is the Budget Officer. He is incharge of the
preparation of budget. I n the month of December, he sends circular to the
Heads of the Departments to prepare budget proposals. After the preparation,
the Heads of the Departments present their budget proposals to the FACAO.
The FACAO scrutinises the departmental budget proposals and rnay make
suitable changes, if necessary. He then consolidates all the departmental
budget proposals and prepares a master budget for the whole of the TTD. Later
on, the FACAO presents it to the EO. Subsequently, the EO places it before the
Board of Trustees not later than the 15" of January every year. The Board of
Trustees approves the budget with or without modifications within fifteen days
from the date on which it was placed before it. The TTD forwards a copy of the
budget to the Government every year before the end of February. The
Government approves the budget with such modifications, if any, as it may
deem fit. If, for any reason, budget is not approved by the Government before
the end of March, the Board of Trustees is competent to incur, for each of the
months of April and May of the following financial year, an expenditure
equivalent to one-twelth of the expenditure provided under each head for the
said year. The Board of Trustees is competent to re-appropriate such amount as
may be necessary from one head of account to another subject to the condition
that the amount so re-appropriated under each head of account shall not exceed
the amount originally sanctioned in the budget for the said year by more than 15
per cent under that head of account without the prior approval of the
Government. The Board of Trustees may send a supplementary budget for the
sanction of the Government. The details of budgetary process currently
followed by the TTD are furnished in Table 3.5.
Table 3.5: Calendar for the Preparation of Budget Estimates in the T7"D
Source: Compiled from the relevant records of the T D , Tirupati.
Period Early December
Last week of December
Early January Middle of January Last week of January February March
3.3 Budget allocation: I n budgeting, the TTD allocates its resources as
Event Circular to the Heads of the Departments to send budget proposa Is Receipt of budget proposals, scrutiny and preparation of master budget by the FACAO Submission of budget to EO Submission of budget to the Board of Trustees Approval of budget by the Board of Trustees Presentation of budget to the State Government Approval of budget by the State Government
follows: (i) for the realisation of the objectives of the 7TD and remuneration for
services; (ii) the due discharge of all the liabilities and subsisting commitments
binding on the TTD; (iii) the maintenance of working balance; (iv) the
arrangements to be made for the health, safety and convenience of pilgrims;
(v) contribution to the reserve fund of the TTD; and (vi) construction, repairs,
renovation and improvements to the TTD buitdings.
3.4 Budget format: The budget format of the T D is depicted in Figure 3.2.
Figure 3.2 : Proforma Budget of the TTD
3.5 Budget period: The budget period of the TTD is same as that of the
Account code
Government of AP. I t is from 1'' April to 31St March. The FACAO compares the
actual performance with the budget estimates and, thereby, finds out the
Particulars
discrepancy, if any, between the former and the latter. He then ascertains the
reasons for variance and initiates remedial action to correct it.
Actuals Sanctioned Revised estimates
Budget estimates
4. Creation of funds:
4.1 Contribution to Endowments ~dministration Fund: The EO furnishes
to the Commissioner of Endowments a statutory return of annual income of the
previous financial year on or before isth ~ a y of each year, aRer getting i t
approved at a meeting of the Board of Trustees at which the Commissioner is
present. On receipt of annual income return, Commissioner makes an
assessment at the rate mentioned in the Endowments Act on or before 3ot" June
of every year. Immediately, the Commissioner writes to the EO to remit the
amount so fixed. The EO arranges payment on or before 31" July of every
year to the Endowments Administration Fund. The Commissioner can extend
time for- ~~aynient till the end of December every year for reasons to be recorded
in writing. At present, the TTD is contributing 50 lakhs annually towards the
said fund.
4.2 Contribution to Common Good Fund: The TTD, out of its funds, pays
annually trj the Commissioner of Endowments, a contribution of 2.20 crores
towards Common Good Fund. This fund is utilised for the following purposes: ( i )
renovation, preservation and maintenance, including payment of salaries to
archakas, of Hindu charitable and religious institutions or endowments wEiich
require financial assistance and promotion and propagation of purposes and
objectives connected therewith; and (ii) establishment and maintenance of
Vedapatasalas and schools for training in archakathwam, adhyapakathwam,
silpam, vedaparayanakathwam, vaidyam, etc.
4.3 Deposit of funds: The money received by the TTD shall be in the
custody of the FACAO subject to the control of EO. All the money rereived by
the TTD in excess of the limit laid down by the Board of Trustees has to be
deposited in Scheduled Banks, Co-operative Banks, Regional Rural Banks or
Housing Development Finance Corporations, The FACAO, subject to the overall
control of the EO, has the power to withdraw such deposits. No money shall be
withdrawn from the bank unless it is required for immediate payment. The
FACAO constitutes TTD Employees' Pension Fund, Gratuity Fund and Provident
Fund separately duly setting apart the amount and creates irrevocable trust for
the purposes of discharging the liabilities of the TTD employees as already
stated. Any amount not required for immediate expenditure has to be invested:
(a) in one of :he following securities, namely,
i. Promissory notes, debentures, stock or other securities of the Central
Government or the AP State Government; and
ii. Stocks or debentures or shares of companies, the interest wherein shall
have been guaranteed by the Central Government or the AP State
Government.
(b) in fixed deposits, for a period not exceeding 6 years, in any scheduled bank
or in any government treasury under the category of interest bearing
deposits.
(c) in the TTD Employees Co-operative Bank not exceeding Rs.15 lakhs.
The investments shall not be pledged, encashed or withdrawn without the
prior permission of the Board of Trustees.,
5. Sale of propem:
5.2 Movable property: The movable property of the TTD other than
perishables, is sold by public auction held either at Tirupati or Tirumala or at
the temple or the place where the property is situated. The EO or any other
officer authorised by him decides the terms and conditions of sale such as
division of properties into lots, amount to be initially deposited by bidders, the
place, date and hour of sale, security to be furnished by the highest bidder and
the period within which the sale price is to be paid. A copy of sale notice shall
be published not less than seven days before the date of sale. Every sale of
movable propetty shall be confirmed by the EO. However, if the amount
involved is more than one lakh per lot, such sale shall be confirmed by the Board
of Trustees. I f no order confirming the sale is received by the purchaser within
one month from the date of sale, the sale shall be deemed to have been
cancelled. For any reason, if the sale is not confirmed by the €0 or the Board
of Trustees as the case may be, a fresh sale shall be conducted. The purchase
price has to be paid in cash immediately after the receipt of order confirming the
sale. The purchaser is not permitted to carry away any part of the property
until the purchase price is paid in full. If the purchaser defaults, the property
has to be resold by auction and the purchaser who has defaulted is liable for
any loss arising thereon as well as the expenses incurred on the resale, The
Board of Trustees may, for special reasons, accord sanction for sale otherwise
than by public auction. The movable property, in the form of coins which have
ceased to be legal tender, shall be disposed off in accordance with the provisions
of the Indian Coinage Act, 1906. The perishable articles may be sold in
accordance with the special instructions issued by the Board of Trustees. Any
gold which '5 received as offering shall not be sold, I t may be converted into
gold dollars with the image of the Lord for sale to devotees at prices fixed by the
Board of Trustees. Any gold which still remains unused shall be used for
conversion into jewellery for the utsawamurthis or for other purposes connected
with the Lord or the temples. I n no case, shall gold be sold in the open market.
5.2 Immovable property: The TTD, with the approval of the Board of
Trustees, cap sell its immovable property by pubiic auction if it is necessary or
beneficial, is consistent with its objectives and the consideration is reasonable.
It shall publish or issue a notice before selling its property. The notice should
contain the nature of the transaction, detailed and correct description of the
property, encumbrances, if any, attached to the property and the sale price. A
copy of such notice should be published in the local newspapers. I f the
property is situated in a village, it shall be sold by beat of tom-tom and by
putting it on the notice board in the office of the EO. Sale of property,
authorised by the Board of Trustees, shall be effected by the EO through public
auction. The sale has to be conducted in a conspicuous place in the locality
where the property is situated. The postponement of sale of property at the
time of auction should not be entertained unless a stay order is issued by the
Board of Trustees or the Government or the Court. The Board of Trustees will
have to communicate confirmation or refusal of sale within two months from
the date of sale to the buyer of the property. The buyer bears the expenses of
sale as the sale is effected in his favour.
6. Audit: ' h e major achievement worth mentioning due to the introduction of
the new accounting system is the treatment of hundi collection of Srivari temple
a t Tirunlala as 'Corpus Fund'. Consequently, there are no surplus funds to pay
to any other institution. I n addition, the TTD has been exempted from the
payment of income tax with effect from 1973-74. The LFA Department audits
the accounts of the TTD annually. The audit department is headed by the
Director of Audit. He is appointed by the Government of AP. After completing
the audit of accounts of the TTD, the auditor sends a copy of the report to the
Government and submits another copy to the EO. The audit repod deals with
the following: (i) whether required accounts and accounting manual are
maintained; (ii) whether the immovable properties not used by the TTD have
been leased out to the advantage of the l T D ; (iii) whether the various items,
incomes and amounts due to the 7TD have been realised or due steps have
been taken to recover them; (iv) whether any claims have become barred by the
law of limitation; (v) whether all collections have been brought into account
without any delay; (vi) whether any claims have been written off and, if so, to
what extent and under what authority and reasons thereof; (vii) whether the
expenditure is in accordance with the sanctioned budget and, if there are any
deviations, v\lhether the same have been duly approved or ratified by the
competent authority; (viii) whether every item of expenditure is sanctioned by a
competent authority and supported by a proper voucher; (ix) whether any item
of expenditure is, prima facie, extravagant in his opinion; (x) whether proper
steps have been taken to preserve the costly and valuable jewellery and rare
pieces of art connected with the TTD temples; (xi) whether a dittarn is prepared
and sanction obtained for it from the prescribed authority; (xii) whether annual
requirements of various supplies and services have been assessed at the
beginning of the year, tenders or quotations were invited for the same and the
rules and regulations thereof followed; (xiii) whether debentures, share
certificates, Government bonds and fixed deposits are properly safeguarded; and
(xiv) whether any investments in securities have been encashed before the date
of maturity with the permission of the competent authority. The auditor should
append to his report (a) a consolidated statement of receipts and payments
under the budget heads; (b) a consolidated statement of income and
expenditure; (c) a consolidated statement of assets and liabilities; and (d) a
statement of debentures, share certificates, Government bonds and other
securities.
The FACAO and the staff working under him place all the accounts,
records, documents etc before the auditor. They should also furnish such
information, assistance and offer facilities as may be necessary for proper audit
of accounts. After the audit, auditor furnishes audit report to the EO. The
FACAO rectifies the defects or irregularities pointed out by the auditor in the
audit report and prepares and submits a rectification report. The EO should
place the audit report before the Board of Trustees within 30 days from the
date of receipt of the report. On consideration of the audit report, if the Board
of Trustees finds that any officer or servant was guilty of incurring illegal
expenditure or loss or waste of money or other property thereof caused by
misconduct, misappropriation, collusion, fraud or breach of trust, it may direct
the EO to take disciplinary action against the person concerned and to take such
steps as are deemed necessary. The Board of Trustees may also direct, without
prejudice to the disciplinary action, institution of criminal proceedings in
deserving cases.
I n the TTD, audit of books of accounts is pending from 1998. The audit
report relating to 1996 and 1997 is yet to see the light of the day. Hence, audit
objections for only 1989-95 are furnished in Table 3.6. During this period,
there were as many as 11,059 audit objections spread over Rs 50.61 crores.
The maximum number of audit objections were made during 1993 (2419), while
the minimum during 1989 (748). In rupee terms, it was the highest during 1995
(~s.20 crotes) whereas it was the lowest during 1991 (~s.0.76 crores). This shows
that due attention was not paid to serious irregularities involving crores of
rupees in the financial administration of the TTD.
Table 3.6: Audit Objections in the TTD during 1989-95
~ - - ~ ~ ~ - _ _ r f ~ _ r ? _ o . of objections 748 6.89
1999 1159 1991 890
1478 1993 2419 1994 2287 1995 2078 Total 11059
---
Note : Aud~t reports were available upto 1995 only. Source : Compiled from the relevant Audit Reports of the TTD, Tirupati.
The it-1-egularities reported by the LFA department are discussed below: (a)
the TTD collects rent and lease payments from its employees and lessees
respectively. But there is a discrepancy to the tune of Rs.7.25 lakhs between
the original receipts and duplicate receipts. (b) the TTD purchases electrical
goods, spare parts and other articles by inviting tenders. Serious lapses were
found in the purchases relating to the aforesaid items. For example, purchase
prices were different from quoted price. This led to a loss of Rs.21.51 lakhs.
(c) while physically verifying the closing stock in the stores, it was noticed that
the stock was short to the tune of Rs.6.43 lakhs as compared to stores ledger
book. This is mainly because of excess withdrawal of panyarams and provisions
from stores and also non-recording of issues of spare parts on hand loan basis to
AP State Road Transport Corporation. (d) The LFA department pointed out that
the TTD had lost Rs.45.26 lakhs. The contributory factors for this include: non-
collection of propulsion charges from the Director of Sri Venkateswara Institute
for Medical Sciences, Tirupati, and the Second Class Magistrate Tirupati, for
their use of the l T D vehicles; short remittance of parakarnani currency; sho~tage
in the sale of special darshan tickets; purchase of ghee at a price higher than the
one quot:ed from the Chittoor Co-operative Milk Producers Union Limited;
shortage in the collection of sale proceeds of audio-video cassettes; missing of
library books; excess printing of Saptagiri Journal; publication of panchangams
in English on a larger scale than required and the resultant loss due to poor
sales; performance of arjitha kalyanotsavam twice on the same name etc. (e)
The LFA department pointed out that there are irregularities in the sanction and
collection of advances worth Rs.44.83 lakhs. For instance, the TTD failed to
explain why it had provided a huge sum as advance to M/S Voltas Ltd for air
conditioning the super speciality hospital. Further, i t had not recovered the
installments due on house building loans and vehicle advances. (f) The TTD
invested its funds at a low rate of interest on long term investments. As a
result, the TTD incurred a loss of Rs.69.36 lakhs. I n addition, it made
investments in deposits maturing after 6 years, which is contrary to the
provisions of the TTD Act in vogue.
REFERENCE:
1.Tirumala Tirupati Devasthanams Act 30/1987, Section 106.