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Defence Accounts Department, with the Controller General of Defence Accounts at its head, functions under the administrative control of the Financial Adviser (Defence Services). The duties of the Defence Accounts Department are broadly audit, payment and accounting of all charges pertaining to the Armed Forces, including bills for supplies and services rendered and for construction/repair works, pay and allowances miscellaneous charges, pensions, etc. The Department is also responsible for the audit of cash and stores account kept by the various units and formations (including arsenals, workshops and storage depots) in the three services and maintenance of pay accounts of Army Officers and combatants of Army. The manufacturing accounts of Ordnance factories and the Naval Dockyard and the store accounts of the Ordnance factories are also kept by the Defence Accounts Department. They also maintain Accounts relating to works services and audit the construction and other accounts relating to works project maintained by Military Engineer Services. In addition to the duties mentioned above, the Controller of Defence Accounts function as Local Financial Advisers to the General Officers Commanding-in-Chief of Commands, Area Commanders, etc.

The Defence Accounts Department comes under the Ministry of Defence with the Controller General of Defence Accounts as the Head of the Department. The organization of the Defence Accounts Department corresponds broadly to the organization of the three Services. In addition, it also caters for the Ordnance Factories. Defence Research & Development Organisation, the Canteen Store Department, the Coast Guard, the Border Roads Organisation and Inter-Service Organisations under the Ministry of Defence.

The field organization of the department dealing with the Army has been structured by and large on the pattern of Army Commands/Areas. The location of these Controller Offices is in close proximity to the Command Headquarters/Area Headquarters in order to enable them to render prompt services to the units/formations located in these areas. Under some of the Controllers offices, there are also Area Accounts Offices to render prompt services to the Sub-Areas. In addition, there are Local Audit Offices to audit the accounts of the units and formations and one Sr.AO/AO is attached to each Garrison Engineer. The Pay Accounts Offices (JCOs/ORs) are also under the jurisdiction of the nearest Regional Controller. In all there are 12 Regional Controllers. In addition, one Principal Controller of Defence Accounts at Pune specifically deals with the pay and allowances of the Commissioned officers.

The remaining Controllers Office are patterned to serve a particular Service or function except for PCDA (Headquarters) at Delhi which covers all the Services, Inter-Services Organisations and the Ministry of Defence. The Principal Controller of Defence Accounts covering the Navy is located at Mumbai. In the case of the Air Force, there are two Controller of Defence Accounts, one Principal Controller at Dehra Dun covering all the Commands and field areas and one Controller at New Delhi covering the units located in Delhi including Air Headquarters. The Defence Research & Development Organisation has expanded considerably and there are a number of projects being handled by the Defence Laboratories. Accordingly, there is a Principal Controller for R&D at New Delhi and one Controller each at Bangaluru and Hyderabad to deal with all matters connected with the R&D Organisation with regional Joint Controller of R&D functioning at Pune, Dehradun and Balasore. For the Canteen Stores Department, the Controller is located at Mumbai. Similarly one Principal Controller is separately established at Delhi for Border Roads.

The organization of the Ordnance Factories has 41 Factories under the Ordnance Factories Board. The entire payments, accounting, internal audit and financial advice functions for these factories is looked after by the Principal Controller of Finance & Accounts (Factories) at Kolkata. A Controller of Accounts in the Headquarters and ten Controllers (Fys) located alongside major Ordnance and Clothing Factories assist him. This complex accounts set up is a highly specialized segment of the department dealing with the cost accounts of the Ordnance and Clothing Factories.

The pension establishment of Defence has been growing substantially. Consequently, the responsibility of the department to determine the entitlement and make prompt payments of pensions has increased. In order to handle this complex task, there is a Principal Controller of Defence Accounts located at Allahabad to deal with the sanctions of pensions in respect of the Service personnel (excluding Air Force and Navy personnel which are sanctioned by CDA (Air Force) and PCDA (Navy) respectively ) defence civilians and the staff of the Defence Accounts Department. He is assisted by a Controller of Defence Accounts in the Main Office. In addition, there is a Controller at Meerut dealing with the disbursement of pensions through 51 Defence Pension Disbursing Offices (DPDOs) located in various States. 13 DPDOs also function under the CDA (Chenai), who is responsible for disbursement of pension in four Southern States.

The General Provident Fund Accounts of the civilian personnel of the Army as well as the staff of the Defence Accounts Department are maintained by the Controller of Defence Accounts (Funds). The GPF Accounts of other defence civilians are maintained by the concerned functional Controllers such as Controllers of Finance & Accounts (Fys), Principal Controller of Defence Accounts (R&D), PCDA(Navy) and PCDA (Border Roads). In addition, there is a Controller of Defence Accounts (Training) at Meerut to take care of the training requirements of the personnel of the department.

The Principal Controller of Defence Accounts (Headquarters) New Delhi deals with the pay and allowances, traveling allowance claims and fund accounts of civilian staff of Ministry of Defence, the Army and Navy Headquarters and the Inter-Services Organisations located at Delhi. Claims pertaining to contingent and miscellaneous charges of the above said organizations are also dealt with by this Controller. In addition, this Controller also handles all work relating to payments of foreign contracts including contracts entered into by the Department of Defence supply, payments for purchases made by Army Purchase Organisation and the work relating to London Account Current.

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