The cadre of Divisional Accountants who are specifically recruited and practically trained in works accounts which was under the control of Accountant General has been taken over by the Government of Andhra Pradesh under the Administrative control of Finance (Works Projects) Department in order to form a viable and comprehensive works accounts organisation in the year 1980. In the year 1982 A.P. Works Accounts Service was formed.

Having experienced the satisfactory functioning of the system and the advantage of centralised accounting etc., the Pay & Accounts Organisation was extended to all other Major Projects in the State initially in the year 1994 for a period of one year on trial basis on which a major portion of State’s outlay is invested.

After successful working of PAO system in major projects, Government felt the need to extend to the entire Irrigation Department in the year1996 after observing the results of trial basis.

Further when Cyclone Emergency Reconstruction Project (CERP) was taken up in 9 coastal districts with World Bank Assistance, it had become absolutely necessary to prepare centralised accounts promptly for the entire CERP to furnish to the World Bank authorities, to prepare and raise reimbursement claims duly supported by the consolidated audit certificate to be issued by AG, AP. For this purpose, the Government have entrusted the payment and accounting functions of CERP in respect of all Departments viz Irrigation, Panchayat Raj and Roads & Buildings to Pay & Accounts Organisation. This was found to have worked out excellently well. Even the World Bank authorities appreciated the system and recommended its adoption in other States also. The Government have also issued orders to adopt the Pay & Accounts System of payment and accounting functions to all Schemes taken up with external aid.

Keeping the efficacy and efficiency in accounting and audit functions, the Government have extended the PAO system to all Engineering Departments namely Roads & Buildings, Panchayat Raj & Rural Development, Public Health and Forest Departments from 1.4.2001.

Henceforth, the administrative control and functions of the system was being monitored at the Government level. Consequent on expansion of the system to various departments, Government have issued orders forming `Works Accounts Service’ and creating `Directorate of Works Accounts’ as an HoD in the year 1998 as per the recommendations of One Man Commission headed by Sri Sundersan, IAS (Retd).

Directorate of Works Accounts was created in the year 2003 and functioning with effect from 30.7.2003. 2 Government in the year 2006, have brought certain corporations viz. APSIDC, APHMIDC, Fisheries, A.P. Police Housing Corporations etc., where civil works are taken up, under the fold of PAO System of payments. Similarly it was also extended to other Non-Engineering Departments where civil works are undertaken.

Organisation Set up

The Director, Works Accounts is the Head of the Department assisted by 2 Joint Directors at Head quarters and 5 Joint Directors at field level at Dowlaiswaram (East Godavari), Ongole, Hill Colony (Nalgonda), Kadapa and LMD Colony (Karimnagar). There are 33 Pay &Accounts Officers/Asst Pay & Accounts at each District functioning under the control of Joint Directors of Works Accounts. The PAO/APAOs shall be assisted by the Non Gazetted Staff at District. There are 1005 Non Gazetted Staff working in all the Districts.

The Divisional Accounts Officers (Grade I and Grade II) works in the Engineering Departments who are technically under the control of Executive Engineers of the various Engineering Divisions. This cadre is entirely under the administrative control of the Director of Works Accounts. Their performance will be watched and reviewed by the Joint Directors concerned at field level. The cadre strength of DAO Grade I and Grade II put together is 430.

Nature of functions

Director of Works Accounts

• Head of the Department, Chief Controlling Officer
• Functional control over JDWA/ PAO/APAO and DAOs
• Appointing authority for DAOs
• Authorisation of LOC to all Engineering Departments
• Member of Commissioner of Tenders
• Inspection of JDWA/PAO/DAO Offices.

Joint Directors of Works Accounts

• Scrutiny of estimates and agreements more than Rs.10 lakhs
• Review of post audit bills at 40% & 80% stage of payments
• Periodical Inspections of PAOs/APAOs
• Administrative control of the Non Gazetted Staff of the PAO office under his jurisdiction

Pay & Accounts Officer/Asst. Pay & Accounts Officer

• Responsible for 100% pre-check on all sorts of claims viz work bills, firm bills, establishment bills, contingent bills and departmental adjustment bills, which is not there in any comparable organisation viz Treasuries and Local Fund Dept.
• Responsible to scrutinize all the sanctions of estimates, revised estimates, work-slips, completion reports, Agreements and supplemental agreement, the data for the rates of items in the estimates and supplementals etc.
• Responsible for rendition of expenditure accounts for the expenditure incurred to the Accountant General, AP every month as per the provisions of PAO Manual.

Divisional Accounts Officers

• Financial Advisor to Executive Engineer
• Pre-check of bills
• Inspection of Sub Divisions