DCAA COMPLIANCE BLOG

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DCAA Timekeeping Requirements - Blog Part 1

Posted by Mike Anderson on Fri, Sep 17, 2010 @ 02:05 PM

For many new government contractors and/or small government contractors, it may be confusing as to what is required and why it is required in timekeeping records.  This is a very important topic to the government and the government contractor should not underestimate the importance or the need to do it in accordance with what the government expects.  Failure to meet these expectations will most certainly result in some stiff lessons, including delayed payment and/or refusal of future contracts.  So what is exactly required by the government?   If you look in the DCAA Contract Audit Manual Chapter 5 you will find very specific requirements that the DCAA will look for in a timekeeping system (Para 5-908 & 909).  This requires procedures for the proper use, controls, preparation of and recording of actual times worked.  DCAA auditors will be looking to see that 1) all hours worked for all employees are recorded (this includes all direct and all indirect work), 2) the proper job assignments are made by different individuals than are performing the work (to the extent practical), 3) daily recording of time worked by the employee, 4) an audit trail for any & all changes, 5) employee review/approval, 6) supervisor review/approval, 7) evaluation of labor distribution, 8) reconciliations between the distribution summary and the labor charges and 9)procedures to assure all hours worked (even if they are not billable) are recorded.  This seems fairly simple to read but it is always difficult to implement.  Tech Biz has set up numerous compliant timekeeping systems for our clients and have some "boilerplate" procedures that can be adopted to almost any situation.  The difficult part becomes in following the procedures.  Look for Part 2 of this series where I will talk about the different types of systems including manual and automated systems.
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Topics: DCAA guidance, timekeeping


Timekeeping and the DCAA

Posted by Mike Anderson on Tue, Jun 01, 2010 @ 01:12 PM

Did you fill out your timecard today?  I'm talking about exempt employees mainly here since non-exempt employees have always had fairly difinitive ways to record time for both government and non-government jobs.  Does anybody remember the "good old days" where you filled out a what looked like a punchcard for all of your hours worked?  How about feeling like your employer didn't trust you even though you were salaried?  Do you have trouble remembering to record your time spent let alone remembering to record the time each day?  You are not alone.  Timecards for government contractors are some of the most difficult paradyme shifts when entering the world of government contracting.  Many systems exist but not all will pass DCAA muster.  The most common problem system involves filling out Excel spreadsheets electronically.  These systems typically don't have the type of controls the DCAA wants to see and will fail a DCAA audit as a result.  There are various "manual" versions of timekeeping (reminiscent of the punch card mentioned above) and there are a host of web-based systems that have been developed specifically to meet the DCAA requirements.  If you have any questions about your system, seek professional help prior to your DCAA audit to make sure your system will pass.
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Topics: DCAA compliance, DCAA, DCAA audit, timekeeping