The Chief Pay & Accounts Office performs a wide range of payment, accounting, pension, financial management and audit-related functions.

Payment Functions CPAO and its Pay & Accounts Offices undertake pre-check and authorisation of claims submitted by Drawing & Disbursing Officers. This includes pay and allowances, office contingencies, personal claims, miscellaneous payments, loans and advances, provident fund claims and other admissible expenditure.
Bills are scrutinised for compliance with applicable financial rules, availability of budget provision and correct classification of expenditure before payment authorisation.

Accounting and Compilation CPAO consolidates the monthly accounts received from the Pay & Accounts Offices and other accounting units and renders the accounts to the Controller General of Accounts, Department of Expenditure, Ministry of Finance.
The organisation also assists in the preparation of the Appropriation Accounts and Finance Accounts of the Andaman & Nicobar Administration.

Pension Services CPAO processes and authorises pensionary benefits of employees of the Administration. The pension function covers examination of pension papers, verification of qualifying service and pensionable emoluments, calculation and authorisation of pension, gratuity, commutation, family pension, leave encashment and other retirement benefits.
The organisation also facilitates timely processing of pension revisions and related amendment authorities.

GPF Services CPAO maintains General Provident Fund accounts of eligible employees, processes GPF advances and withdrawals and authorises final settlement of GPF balances at retirement or in other admissible circumstances.

NPS Services The organisation facilitates NPS-related activities including remittance of subscriptions, generation and management of PRAN-related services, processing of admissible transactions and coordination with the designated authorities.

Financial Management CPAO supports the Administration in maintaining financial discipline and effective expenditure management. It provides financial and accounting assistance to Departments and Drawing & Disbursing Officers and facilitates compliance with Government rules, procedures and instructions.

Internal Audit and Inspection The Local Fund Audit/Inspection wing undertakes audit and inspection of local bodies and institutions receiving Government grants, including Panchayati Raj Institutions and other eligible grantee institutions. The internal audit function also seeks to identify procedural deficiencies, strengthen internal controls and improve the quality of financial and accounting management.

Public Financial Management CPAO uses digital platforms including PFMS and other Government financial applications for processing payments, accounting, reporting, sanctions, pension, GPF and related financial transactions. The organisation's transition from early computerisation to modern digital platforms reflects its continuing commitment to efficient, transparent and technology-enabled financial administration.

Training and Capacity Building CPAO undertakes training, workshops and handholding programmes for Accounts Cadre officers, DDOs and other stakeholders on PFMS, GFR, procurement, GeM, DBT and other aspects of public financial management. The organisation has also recognised capacity building as a continuing requirement for keeping pace with changes in Government financial systems and technology.