A separate Pay and Accounts Office, Puducherry was established on 1.11.1954 consequent on the de facto transfer of French establishment in India to the Government of India. Now, this is a State level Audit and Accounts organization of the Government of Puducherry which also deals with all inter-governmental cash transactions with Accountant Generals of all State Governments and with Accounts Officers of Central Government Ministries / Departments, Railways, Defence Services, etc. After enactment of Union Territories Act, 1963, a separate Consolidated Fund of Union Territory of Puducherry and Contingency Fund of Union Territory of Puducherry were created. After Departmentalisation of Accounts by the Government of India in the year 1976 and appointment of Controller General of Accounts, Chief Controller of Accounts, Controller of Accounts, Pay and Accounts Officers in the Ministries and Departments of Government of India, the Government, with a view to maintain State level outlook and representation, re-designated the post of Pay and Accounts Officer as Director of Accounts and Treasuries and changed the name of the office to Directorate of Accounts and Treasuries. Vide Order No.F.1(12)-B(R)/89 dated 10.4.1989 of Government of India, Ministry of Finance, Department of Economic Affairs, the Comptroller and Accountant General was relieved from the responsibilities for the preparation, in each year, of the accounts showing under the respective Heads, the annual receipts and disbursement for the purpose of Union Territories of the Puducherry. Consequently, the preparation of Appropriation Accounts and the Finance Accounts solely rested with the Directorate of Accounts and Treasuries, Puducherry

        The Union Territories Act, 1963 was amended in the year 2001 for creation of a separate Public Account and came into effect from 17.12.2007. From this date onwards, the maintenance of accounts of daily cash balances reported by RBI, CAS, Nagpur is looked after by the Directorate of Accounts and Treasuries under the personal supervision of the Director of Accounts and Treasuries. Thus, the Director of Accounts and Treasuries, Puducherry is functioning like that of an Accountant General (Accounts and Entitlement) in a State in all respects in all accounts matters. The post of Accounts Officer Grade-I (now re-designated as Junior Accounts Officer and Senior Accounts Officer) were created to aid the HODs and other Administrative authorities to discharge their accounting functions effectively.