The ICAS came into effect from 1977 under the “Scheme of Departmentalisation of Accounts” which was a major financial reform separating the accounts functions from audit for the central government.

The Indian Civil Accounts Organisation was set up with its headquarter in the Ministry of Finance, Department of Expenditure, under the Controller General of Accounts.

The main functions of the organisation in the headquarter are as follows:

1. To lay down general principles of government accounting relating to union/state governments and form of accounts;

2. To frame rules and draft manuals relating to all matters connected with the form of accounts and procedures for accounting of receipts and payments;

3. To provide/lay down guidance/directions in accounting matters to the ministries/departments.
This includes traditional areas as well as change over to updated systems of computer based accounting;

4. To prepare the Union Government Finance Accounts and Appropriation Accounts (Civil) and Union Government Monthly Accounts;

5. To reconcile the cash balances of the Government as appearing in the Government accounts with that in the accounts of the Reserve Bank of India;

6. To liaise on behalf of the Ministries and Departments with the Budget Division and the Comptroller and Auditor General of India in accounting matters;

7. To carry out technical inspection of the Civil Accounts Offices;

8. Cadre Management of Group ‘A’(Indian Civil Accounts Service) and Group ‘B’ (Pay and Accounts Officers) officers;

9. Administration of rules relating to Group ‘C’ and Group ‘D’ civil accounts staff;

10. Training and holding of Departmental examinations; and

11. Coordinate and assist in the introduction of Management Accounting System in the Ministries.

The main functions of the Field Offices are as follows:

1. To carry out pre-check and process payment of bills and compilation of accounts;

2. To generate monthly and annual accounts;

3. To generate accounting reportsfor monitoring of revenue and expenditure for the use of Financial Adviser, Secretary, Controller General of Accounts and other authorities;

4. Preparation of Receipt and Public Account Budget Estimate;

5. Maintenance of General Provident Fund Accounts, processing and authorisation of pensions;

6. Maintenance of loan accounts for public sector undertakings and state governments; grants-in-aid payments to state governments/autonomous bodies and watching of utilization certificates;

7. Personnel management of the accounts staff;

8. Office management of the Pay and Accounts Office;

9. To carry out internal inspectionof the Pay and Accounts Officesas well as drawing and disbursing officers of the Ministry;

10. To liaise with headquarters in all policy matters; and

11. Such other tasks as the Financial Adviser/Secretary may entrust. Since the Service encompasses allCivil Ministries/departments and carries on vital functions of payment, accounting and internalaudit, it is self-evident that interaction and coordination with other services is absolutely essential. It is in fact in built-in even the routine discharge of duties and responsibilities of the civil accounts organisation.