Catalogue description Records of finance departments

Before 1855 the Secretary-at-War had an office of Army accounts, but this was not responsible for all matters of Army finance. The Ordnance Office, had its separate financial system; the paymaster general acted (and continued after 1855 to act) as a paying agent; the Treasury was responsible for the finances of the Commissariat Department in addition to its general responsibility for government expenditure; audit was the concern of the comptrollers of Army accounts until 1835 and thereafter of the commissioners for audit. Soldiers' pay was dealt with by colonels' clerks until 1798 when they were replaced by regimental paymasters. Officers' pay was dealt with by civilian Army agents.

In the new War Office of 1855 financial matters were made the responsibility of an accountant general. There were separate Accounts and Audit Departments until 1860 and again from 1865 to 1870, when audit functions were under a separate chief auditor of Army accounts. In the latter year the two were merged in a Finance Department under the accountant general, who was responsible to the financial secretary, a new office held by a junior member of the government.

In addition to superintendence of the Finance Department he was responsible for the presentation of the Army estimates to parliament. In 1877 he became responsible for the Army Pay Department, formed in that year to embrace the regimental paymasters, district paymasters and Control Department paymasters.

In 1887 he became responsible for the Contracts Branch, and from 1887 to 1899 he was also responsible for the Clothing Department and Royal Ordnance Factories. The Finance Department was expanded and renamed the Finance Division. In 1902 it was completely reorganized and renamed the Finance Branch.

In 1893 the Army Pay Department passed under the control of the quartermaster general. In 1905 it was restored to the financial secretary and merged with the accountant general's department as the Army Accounts Department, but in 1909 it was reconstituted as a military Army Pay Department and in 1920 became the Royal Army Pay Corps. Other results of the 1904 reorganization were the abolition of the post of accountant general and the decentralisation of finance and contract matters, with the financial secretary, now also financial member of the Army Council in general control but with branches attached to the departments of the quartermaster general and the master general of the Ordnance.

Contract matters were brought together again in 1907 in the Directorate of Army Contracts and, except during the First World War, this remained the concern of the financial secretary until 1936, when it passed to the director general of munitions production. Meanwhile in 1924 the permanent under secretary had become accounting officer of the War Office and the financial departments passed under his control, leaving to the financial secretary, in addition to his responsibilities with regard to contracts, concern with the general and parliamentary aspects of finance. In 1947 the office of financial secretary was combined with and later merged in that of parliamentary under secretary.