TTD begins total overhaul of accounting, fiscal management systems, say officials

The Tirumala Tirupati Devasthanams (TTD), which administers the Lord Venkateshwara temple in Tirumala in Tirupati district has begun the exercise an overhaul its accounting and financial management systems, people familiar with the matter said.

The exercise is being undertaken against the backdrop of questions about whether religious institutions require specialised accounting and financial-control frameworks following allegations of irregularities involving donations received by the Ram Temple in Ayodhya.

“The proposed overhaul is aimed at plugging any possible loopholes in the accounting system, since the TTD handles large volumes of offerings, donations and other revenues,” a senior TTD official said on condition of anonymity.

As part of the exercise, the TTD has sought the help of the Institute of Chartered Accountants of India (ICAI). On August 5, the ICAI representatives headed by its president D Prasanna Kumar held discussions with TTD executive officer Muddada Ravichandra and other officials on taking up accounting reforms, financial reporting and governance.

Prasanna Kumar said the ICAI’s Accounting Research Foundation (ARF) has begun a comprehensive study of the TTD’s existing accounting and audit framework and will prepare a project report recommending measures to strengthen financial reporting, internal controls, auditing and governance.

The initiative is aimed at bringing the TTD’s nearly three-decade-old accounting manual in line with contemporary accounting standards, digital systems and global best practices. “A preliminary study had already commenced and the institute expected to complete it and submit its report within 100 days,” Kumar said.

The study will cover the entire accounting cycle of the TTD, from revenue collections and payments to preparation of financial statements and the balance sheet. An expert team from the ICAI ARF is also undertaking field-level assessment and collecting preliminary financial information, including trial balances and account records, to understand the TTD’s existing practices.

According to Prasanna Kumar, the TTD already had a comprehensive system and that its financial operations were being managed through ERP (Enterprise Resource Planning) but its underlying accounting manual is based on a system that has been in use for nearly three decades.

“We shall take it to the next level since the current one is an old system,” Kumar said, adding that the proposed reforms are therefore intended to bridge the gap between the existing accounting framework and the technology-driven financial processes currently followed by the temple administration.

The study will also examine risk management and internal control mechanisms, which are essential to prevent financial leakages. “There should be a strong risk management and internal system, and even if there is any small deviation or lapse, then pilferage would happen,” the ICAI president said.

The TTD official quoted above said the proposed overhaul could have implications beyond Tirumala.