The Treasuries/CPAO function under the administrative control of the Director of Treasuries, Sikkim. There are eight accounts rendering units headed by the following offices, who render initial accounts relating to Civil, Public Works, and Forest Divisions to the Office of the Sr. Dy. Accountant General (A&E), Sikkim, Gangtok:

1. Director of Treasury/Pay and Accounts Office, Headquarters, Gangtok
2.  Chief Pay and Accounts Office, Gangtok District,
3. Chief Pay and Accounts Office, Gyalsing District ,
4. Chief Pay and Accounts Office, Mangan District,
5. Chief Pay and Accounts Office, Namchi District,
6. Chief Pay and Accounts Office, Pakyong District ,
7. Chief Pay and Accounts Office, Soreng District,
8. SNA-SPARSH Cyber Treasury, Headquarters.

Initially, there were four District Chief Pay and Accounts Offices (CPAO) East, West, North, and South — functioning under the control of the Director of Treasuries. Subsequently, with the creation of two new districts, Pakyong and Soreng, separate Chief Pay and Accounts Offices have been established for these districts. In addition, a newly created CPAO, the SNA-SPARSH Cyber Treasury, has been set up at the Headquarters. All these CPAOs function under the administrative control of the Director of Treasuries, Sikkim. Each CPAO acts as a non-banking treasury, and the District CPAOs along with the CPAO (Headquarters) in the Office of the Principal Director of Treasuries serve as the primary units through which all types of payments of the State Government are carried out.

The CPAOs and the Pay and Accounts Office, Headquarters, maintain the accounts of the Government and submit them to the Office of the Sr. Dy. Accountant General (A&E), Sikkim, with reference to the instruments received from the State Bank of Sikkim. Unlike in other States, the Reserve Bank of India does not conduct government business in Sikkim, as no agreement exists between the RBI and the Government of Sikkim under Section 21A of the RBI Act, 1934. The State Bank of Sikkim acts as the Government’s banker and collects State revenues through its branches across Sikkim. All inter-governmental transactions with the State of Sikkim are settled by means of cheques or bank drafts as per the provisions of Para 8.20 of the Civil Accounts Manual.

In addition, the Directorate of Pension, GPF & GIS is entrusted with the maintenance of GIS, GPF, Pensions, and CPF/NPS accounts of the State Government employees, including the GPF accounts of Judges of the High Court. The Directorate of Pension also disburses Central Civil and Defence Pensions, as well as pensions of other State Governments’ pensioners residing in Sikkim who opt to draw their pensions from the treasuries of Sikkim. The functions of GPF and Pension are governed by the GPF and Pension Rules framed by the Finance Department, Government of Sikkim.

The Office of the Sr. Dy. Accountant General (A&E), Sikkim prepares only the Monthly Civil Accounts and the Annual Finance and Appropriation Accounts of the Government of Sikkim, after compiling the instruments such as vouchers, challans/bank receipts, and compiled accounts relating to Works and Forest Divisions as received from the different CPAOs. No entitlement functions are performed by this office, unlike the offices of the Accountants General in other States. This system has been in operation in Sikkim since the inception of the State’s accounting framework.