1 REPORT ON THE AUDIT OF ACCOUNTS OF COCHIN DEVASWOM BOARD FOR THE YEAR 2016-17 (DBAR /2018) NO.KSA(CDB) C- 571/2018 Dated:14/09/2018 Audited by DEPUTY DIRECTOR OF KERALA STATE AUDIT, COCHIN DEVASWOM AUDIT THRISSUR 2 No.KSA (CDB) C-571 /2018 Office of the Deputy Director of Kerala State Audit, Cochin Devaswom Audit,Thrissur. Dated : 14.09.2018 Phone No.-0487 2322609 Email:[email protected] From The Deputy Director. To The Registrar, Honourable High Court of Kerala, Ernakulam. Sir, Sub: Cochin Devaswom Board –Audit Report for 2016-17 (DBAR - /2018) – Forwarded. The Report on the audit of accounts of Cochin Devaswom Board for the year 2016 - 17 in quadruplicate under section 102 to 104 of the Travancore Cochin Hindu Religious Institutions Act 1950 is forwarded herewith for favour of necessary action. A copy of the Report has been forwarded to the Secretary Cochin Devaswom Board also. It is requested that a copy of the proceedings issued on the consideration of the Audit Report by the Honourable High Court may kindly be forwarded to me for reference and guidance in future audit. Yours Faithfully, DEPUTY DIRECTOR. Encl: As above Copy to: 1) The Secretary, Cochin Devaswom Board, Thrissur. 2) The Director of Kerala State Audit Department, Thiruvananthapuram. (With C/L) 3) Spare. No. of Corrections: 3 CONTENTS PREFACE 4 OVERVIEW 5-7 CHAPTER 1 GENERAL 8-11 CHAPTER 2 FINANCE OF COCHIN 12-36 DEVASWOM BOARD CHAPTER 3 AUDIT OF RECEIPT 37-133 ACCOUNTS CHAPTER 4 AUDIT OF TRANSACTIONS 134-163 REVIEW OF AUDIT 164-165 APPENDICES 166-253 No. of Corrections: 4 PREFACE This report has been prepared for submission before the Honourable High Court of Kerala by virtue of the provisions in Section 102 of the Travancore Cochin Hindu Religious Institutions Act, 1950 (Act XV of 1950) as amended from time to time. The Examiner of Local Fund Accounts was appointed as the Auditor vide letter No.A1-2006/52 dt. 30.10.1958 of the Registrar of Honourable High Court of Kerala. The post of the Examiner of Local Fund Accounts was then redesignated as the Director of Local Fund Audit by the enactment of Local Fund Audit Act, 1994.Since then the name of the Department is redesignated as Kerala State Audit Department vide G.O.(M.S)266/15/FIN dated 02.07.2015,with Director as its Head. The report contains observations arising out of test audit of receipt and expenditure accounts of Cochin Devaswom Board for the year 2016-17. Matters relating to the period subsequent to 2016-17 have also been included wherever necessary. Chapter 1 of this Report contains general matters relating to Cochin Devaswom Board and Chapter 2 observations on matters arising from the verification of Annual Accounts of Cochin Devaswom Board for the year ended on 31st March 2017. Test audit of receipt accounts of 57 out of 63 Devaswoms, 1Sathram of Chottanikkara, Ayurveda Dispensary of Nelluvai and Rent collection of Board under the Cochin Devaswom Board for the year 2016-17 was conducted and audit notes were issued. Chapter 3 of this report is a consolidation of the observations of these notes. Chapter 4 contains findings arising from the audit of expenditure of the Board, 5 of its sub offices ie., Office of the Asst. Commissioner, Chottanikkara, Thrissur, Thiruvilwamala,Thiruvanchikulam and Thrippunithura. No. of Corrections: 5 OVERVIEW This Audit Report contains 4 chapters dealing with the structure, Finance, Transactions and Assets of Cochin Devaswom Board. Some of the major findings on audit of Accounts are mentioned below. Sl. Synopsis Paragraph No. No 1 Failure in taking effective steps to implement 2.3.2. Double Entry Accounting System. 2 Wrong debit in bank passbooks `52.66 lakhs , 2.3.3. wrong credit `97.33 lakhs; immediate corrective action sought for clearing the wrong entries. 3 Grant from Government – Renovation of Kavu 2.4.2. and Kulam – not included in annual accounts. 4 Summary of Receipts and Disbursements 2.6 5 Investments 2.12 6 Vazhipadu amount not collected in accordance 3.1. with the approved rate list – Short collection of `24073/- 7 Short credit in posting Vazhipadu collection to 3.4 Vazhipadu Register - `16353/- 8 Short in posting Face value ticket collection to 3.5 Vazhipadu Register - `5208/- 9 Short credit in Cash Book- `20246/- 3.6 No. of Corrections: 6 10 “Enna vazhipadu” rate – not increased in 3.25 consonance with the increase in basic unit rate – laxity on the part of responsible officers – loss to GDF. 1 1 Poonkunnam Devaswom – BhandaramYadasthu 3.40 – amount shown as collection does not match with the denomination written – credibility of the system at stake. 12 Kshethra Upadesaka Samithi of Kuttumukku 3.47 Devaswom – Consistantly defying Board Orders in its function. 13 Chowara Devaswom – receipt for issuance by 3.48 Kshethra Upadesaka Samithi – balance receipts in 2014-15 not handed over to subsequent Devaswom Officer – not produced for physical verification – enquiry suggested. 14 Defects in computer generated receipts system – 3.49 Chottanikkara Devaswom. 15 Number of Silver Amulets received from 3.51 contractor disagree with the proportionate weight of silver supplied by Devaswom – enquiry suggested – Chottanikkara Devaswom. 16 Building constructed by Tourism Department in 3.82 Devaswom land - not handed over – reason may be looked into – Parakkottukavu Devaswom. 17 Malayala Manorama “Vanitha Max” Exhibition 3.86.9 – non tapping of full potential of revenue generation – financial interest of Cochin Devaswom Board not protected – Sree Wadakkumnathan Devaswom. 18 Land given to Thiruvilwamala Grama Panchayat 3.87 on lease – purpose of lease not fulfilled – decision to cancel lease agreement – not materialised – Thiruvilwamala Devaswom. 19 Revised rate of daily allowance given in 4.2.1 February and March 2016 – excess payment of `118830/- 20 More than one Annadanam is perfomed in a day 4.2.3 – excess payment made `336000/- No. of Corrections: 7 21 Actual receipts for payments fall short by more 4.3 than 2.04 Crores – burden of additional commitment on GDF is going to increase – remedial measures called for. 22 Vazhipadu vihitham payments – positive steps to 4.4 get the stay order vacated – not initiated – excess commitment to Devaswom fund. 23 Vazhipadu rate not realized as per Board Order – 4.5,4.6 Puravaka accounts passed without short passing the amount due to GDF – loss `72500/- 24 Registration of Contractors – Provisions of 4.21.1 KPWD Manual not followed 25 PCR Works-Estimate prepared for works before 4.21.2. Navarathri Festival-Works started after the beginning of festival-completed after its Conclusion – Necessity of work in question 26 Vouchers not produced 4.22 No. of Corrections: 8 CHAPTER - I G E N E R A L 1.1 INTRODUCTION The Cochin Devaswom Board constituted under Section 62 of the Travancore Cochin Hindu Religious Institutions Act, 1950 is an autonomous body responsible for the proper administration and conduct of affairs of Devaswoms, Temples and other institutions under the Board. The Board consists of three Hindu members of whom, one shall be a person belonging to Scheduled Caste or Scheduled Tribe vide Section 63 of TCHRI Act, 1950 as amended by the TCHRI (Amendment) Act, 2014. All powers of administration are vested with the Board. It is an autonomous body with powers to frame byelaws and rules necessary for the administration and for carrying out the business related to the Devaswom. The decision of the Board is final and is challengeable only in a court of law. No. of Corrections: 9 1.2 OFFICE BEARERS OF THE BOARD The following personnel held the respective positions as office bearers of the Board during the year under audit. President : Sri. M.P. Bhaskaran Nair (1.4.2016 to 9.6.2016) Dr. M.K. Sudarsan (19.10.2016 to 31.3.2017) Members : Sri. E.A. Rajan (1.4.2016 to 9.6.2016) Sri. K.D. Bahuleyan (1.4.2016 to 9.6.2016) Sri. K.N. Unnikrishnan (25.11.2016 to 31.3.2017) Adv. T.N. Arunkumar (25.11.2016 to 31.3.2017) Special Devaswom : Sri. K.R. Haridas Commissioner (01.04.2016 to 22.1.2017) Sri. R. Hari (23.1.2017 to 31.3.2017) Secretary : Smt. V. Rajalakshmy (01.04.2016 to 30.4.2016) Smt. V.A. Sheeja (1.5.2016 to 31.3.2017) [Note: As the existing Board as on 1.4.2016 was dissolved on 9.6.2016, till the constitution of the new Board, devaswom Commissioner was in charge-] No. of Corrections: 10 1.3. ORGANISATIONAL SET UP There are 403 temples under the management of the Board extending over the districts of Thrissur, Ernakulam and Palakkad. These 403 temples called ‘Keezhedam temples’ are grouped under 63 Devaswoms. All these Devaswoms are brought under four groups viz. Thrissur, Thiruvilwamala, Thiruvanchikulam and Thripunithura. Devaswom officers/ Junior Devaswom officers/Devaswom Mangers are the officers responsible in respect of Devaswoms and Assistant Commissioners in Groups. Apart from this, an office of the Assistant Commissioner is also functioning for the administration of Chottanikkara temple. The following educational institutions are also managed by Cochin Devaswom Board. 1) Sree Kerala Varma College, Thrissur. 2) Sree Vivekananda College, Kunnamkulam 3) Patasala Sanskrit High School, Chittur The Board runs an Offset Printing Press and publishes a magazine called ‘Kshetra Darsanam’. Besides this there is an Ayurvedic Hospital at Nelluvai and Live stock at Wadakkumnathan under the control of Board. 298 Control Institutions also come under the supervision of the Cochin Devaswom Board as per the Travancore Cochin Hindu Religious Institutions Act, 1950. No. of Corrections: 11 ORGANISATIONAL CHART COCHIN DEVASWOM BOARD (PRESIDENT AND TWO MEMBERS) SPECIAL DEVASWOM SECRETARY DEVASWOM COMMISSIONER ENGINEER ASSISTANT ASSISTANT ASSISTANT COMMISSIONER COMMISSIONER OF COMMISSIONER OF OF THIRUVILWAMALA THIRUVANCHIKULAM CHOTTANIKKARA GROUP GROUP DEVASWOM ASSISTANT ASSISTANT COMMISSIONER COMMISSIONER OF OF THIRIPPUNITHURA THIRISSUR GROUP GROUP 1.