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.