The history of Accountant General Office is inextricably linked with the history of the State. The princely Hyderabad State comprising nine Telugu speaking, five Marathi speaking and three Kannada speaking districts had all the Administrative departments similar to the then British India, except foreign relations and army. The Accountant General Office, known as “sadar mahasabi”, functioning under the Finance Department and headed by Hyderabad Civil Services Officer, enjoyed a lot of autonomy and there was a separate SAS cadre for the Office. The lingua franca was Urdu and designations were in Urdu. The Accounts of Nizam State Railway including Road Transport Corporation, which was a nationalized service, were audited by the Railway Audit wing which was a part of Accountant General Office.
The Hyderabad State came under Military rule from 1948 to 1950 and Hyderabad was made a part ‘B’ State with Nizam as Raj Pramukh. Around the same time, the federal financial integration of the state with independent Indian Union took place and the Accountant General Office was brought under the Indian Audit and Accounts Department headed by the Comptroller and Auditor General (CAG) with Headquarters at New Delhi. Mr. Zaheeruddin Ahmed, a very popular and efficient Hyderabad Civil Services Officer, who was head of the Office before integration, continued in Office till 1956.
Although the new State of Andhra was formed in 1953 with Kurnool as its capital by separating the Telugu speaking districts of the then Madras state from the Main province, several offices of the new State, including the Accountant General’s Office, were stationed in Madras city due to lack of adequate accommodation at Kurnool.
Consequent upon reorganisation and formation of linguistic states in 1956, part ‘B’ states were abolished and merged with neighbouring States. Thus, the State of Andhra Pradesh was formed in 1956 by merging the nine Telugu speaking districts of Hyderabad State and one Telugu speaking district of Andhra State, with Hyderabad as its capital. The Accountant General’s Office of Andhra State, functioning from Madras city, was merged with the Accountant General’s Office of part B’ State of Hyderabad, with Hyderabad as Headquarters. The branch office at Madras continued till 1967, when the last batch of staff was transferred to main Office at Hyderabad.
Thus the present Accountant General Office, Andhra Pradesh came into existence in the year 1956 and continued to perform the same functions till 1971, when First Pay and Accounts Office Hyderabad city was formed and Pre audit work of city offices, both for Gazetted and Non Gazetted was taken over by State Government. The Office of the Accountant General, Andhra Pradesh was bifurcated in March 1972 into two offices viz., AG A. P. I and II. The work relating to accounting and entitlement functions of the departments of Government of India located in Andhra Pradesh was transferred along with the offices and staff (in all 178) to the various departmental authorities of Government of India stationed in Andhra Pradesh in 1976. A separate authority, i.e., the Controller General of Accounts was created and Pay and Accounts Offices attached to each department were placed under it. The Accountants General Offices in each state was left with the work of maintaining the accounts and audit of State Government transactions only.
The audit of Central Public Undertakings which was till then dealt with by the commercial audit wing under the Accountant General, was separated and a new office with the designation Principal Director of Audit and Ex- Officio Member of the Audit Board was created in the year 1978. The Audit of State Government Undertakings, however, remained with Commercial Audit wing of the Accountants General Offices. Receipt audit, first introduced in the year 1960, instantly earned the appreciation of the Public Accounts Committee of India about the unearthing of crores of rupees of under assessment.
The year 1984 saw the last bifurcation of the offices in the Audit and Accounts wing with separate cadres and seniority. The offices of IA&AD were re-organized into two distinct functional categories, viz., the Accountant General (A&E), and the Accountants General (Audit) I and II. This office was renamed as the office of the AG (Audit) I, Andhra Pradesh, Hyderabad with effect from March 1984. The post of the Accountant General (Audit) I was upgraded to that of the Principal Accountant General (Audit) I, with effect from 6.12.1990. The nomenclature of the Office has been revised on the basis of functions as Office of the Principal Accountant General (Civil Audit) and Office of the Accountant General (Commercial & Receipt Audit), Andhra Pradesh, Hyderabad with effect from 30th September 2004.
A separate Office of the Sr.DAG (Local Bodies Audit and Accounts) was established with effect from 13-09-2005 under the administrative control of Principal Accountant General (Civil Audit).In July 2011 the office of Sr.DAG (LBAA) has been upgraded as the office of the Accountant General (LBAA).
The Office of the Accountant General (Civil Audit), Office of the Accountant General (LBAA) and Accountant General (C&RA) Andhra Pradesh were restructured in April 2012. The Office of Accountant General (LBAA) was merged with the Office of Accountant General (Civil Audit) and the erstwhile Office of the PAG (Civil Audit) was renamed as Office of The Principal Accountant General (G&SSA) and entrusted with audit of all departments in General & Social Sector in Government of Andhra Pradesh. The erstwhile Office of Accountant General (C&RA) was renamed as Office of The Principal Accountant General (E&RSA) and was entrusted with audit of all departments in Revenue and Economic Sector in Government of Andhra Pradesh. Office of The Principal Director of Audit (Central Revenues) was newly created for audit of all Central Government offices located in Andhra Pradesh & Odisha. Principal Accountant General (G&SSA) is the cadre controlling authority of all the three offices.