Initially, the Controller of Accounts of Air Force (CAAF), now known as Controller of Defence Accounts, Air Force - CDA (AF) was entirely responsible for payments, maintenance of accounts of personnel, equipmentaccounting and internal audit work of the Air Force in India. In August 1942, the Air Force Accounting organization was formed and in Oct 1942, the responsibility for cash disbursement, maintenance of IRLAs and other accounting work was transferred from CAAF to the service organisation named as RAF Base Accounts Office. Consequently, the maintenance of Accounts of the personnel were also transferred to the RAF Base Accounts office as under:-
The organization of this office on its formation was modeled on same pattern that existed in the RAF Base Accounts Office. The accounts of IAF Officers, Airmen Non-Combatant Tech Personnel and enrolled followerswere transferred from RAF Base Accounts Office to Air Force Central Accounts Office on 01 Jan 1945. The AFCAO came to its being at Bombay on that date. Later, AFCAO was transferred to Madras in 1946 and to Race Course Camp, New Delhi in 1947. AFCAO came to its present location in Jul 1966. It is co-located with AFRO and Dy CDA (AF).
The role of AFCAO is to maintain the Individual Running Ledger Accounts (IRLAs) of all categories of personnel including Air HQ Cadre Civilians (AFHQ Cadre) except Non-industrial Unit Cadre Civilians, from the date of induction into service till they become non-effective and to maintain the provident fund account of all personnel.
The main functions of AFCAO in discharge its designated role are:
1. To maintain IRLSs (i.e. pay accounting records) of all categories of personnel (except Non-industrial Unit Cadre Civilians), Flight Cadets and AFHQ Cadre Civilians.
2. To issue monthly salary statement (Pay Slip) to all personnel for whom IRLAs are maintained.
3. To maintain Provident Fund accounts and issue of Annual Fund statements in respect of all personnel including non-industrial unit cadre civilians, in addition to maintenance of 'Nominations' for finalisation of PF dues.
4. To recover Income Tax (Tax Deduction at Source), Rent Bills, Hospital Stoppages and monthly subscription and refund of loans (as applicable) pertaining to AFGIS, IAFBA, FAS, LIC, PLI etc as well as remittance of such collections to respective agencies.
5. disbursement of Pay and Allowances to the personnel of CAMERO units comprising AFCAO, AFRO, AFCME and CSDO as well as certain attached personnel posted to the Dte of AV, Dte of IT and AFCNWP.
6. To remit 'Family Allotments' authorized by entitled IAF personnel.
7. To remit 'Attachments' as authorized by the CAS/Courts.
8. To finalise all non-effective Provident Fund accounts.
9. To grant "Pending Enquiry Awards" to NoK of Non-effective airmen.
10. To administer the estate of Officers and Warrant ranks, who die while in service, through the "Air Force Standing Committee of Adjustment".
11. To compile the summary of accounts for incorporation in the government accounts by audit authorities.