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

The Tirumala Tirupati Devasthanams (TTD), responsible for the management of the Lord Venkateshwara temple in Tirumala, Tirupati district, has initiated a comprehensive overhaul of its accounting and financial management systems, according to officials. This move comes in response to concerns about whether religious institutions necessitate specialized accounting and financial-control frameworks, following reports of irregularities involving donations received by the Ram Temple in Ayodhya.

A senior TTD official stated that the objective of the proposed overhaul is to address any potential gaps in the current accounting system, considering the significant volumes of offerings, donations, and other revenues managed by the TTD. To facilitate this process, the TTD has engaged the services of the Institute of Chartered Accountants of India (ICAI).

On August 5, ICAI representatives, led by their president D Prasanna Kumar, met with TTD executive officer Muddada Ravichandra and other officials to discuss the accounting reforms, financial reporting, and governance.

Prasanna Kumar revealed that ICAI's Accounting Research Foundation (ARF) has commenced a thorough examination of the TTD's existing accounting and audit framework. The ARF aims to prepare a project report that recommends measures to enhance financial reporting, internal controls, auditing practices, and governance. The goal is to align the TTD's nearly three-decade-old accounting manual with contemporary accounting standards, digital systems, and global best practices.

The study, expected to be completed within 100 days, will encompass the entire accounting cycle, from revenue collections and payments to the preparation of financial statements and balance sheets.

Experts from the ICAI ARF are conducting field-level assessments and gathering preliminary financial data, including trial balances and account records, to gain insights into the TTD's current practices. Prasanna Kumar emphasized that while the TTD already possesses a comprehensive system managed through an ERP (Enterprise Resource Planning) platform, the underlying accounting manual adheres to a system that has been in use for nearly three decades.

He stated that the proposed reforms are intended to advance the accounting framework, bridging the gap between the existing system and technology-driven financial processes currently employed by the temple administration.

The study will also scrutinize risk management and internal control mechanisms to prevent any financial leakages. ICAI president D Prasanna Kumar highlighted the critical importance of robust risk management and internal systems, emphasizing that even minor deviations or lapses could potentially result in pilferage. The TTD official quoted above added that the overhaul, once completed and implemented, could serve as a reference model for other major temple institutions, particularly those managing substantial revenues, assets, donations, and public-facing financial operations.