DCAA Timekeeping Requirements
The key to a successful Defense Contract Audit Agency (DCAA) floor check audit is an accurate and up-to-date timekeeping system that proves you are using time and resources appropriately. Proper timekeeping is essential to stay compliant with government regulations, avoid financial penalties, and improve your project’s bottom line.
BOOST specializes in all things GovCon — you can trust us to manage your DCAA timekeeping compliance while you focus on other critical business operations. Below, we’ll present the regulations that will keep you in compliance and show you how we can improve your timekeeping system for better productivity, profitability, and compliance.
Basic DCAA Timekeeping Requirements for GovCons
DCAA-compliant timekeeping stems from the DCAA Pre-Award survey, which must be completed before you can be awarded a cost reimbursement contract. The survey assesses whether your accounting system can accurately track costs in accordance with contract terms. You must pass the survey to receive the contract. Maintaining Job Code and labor category segregation compliance is crucial to passing any DCAA Pre-Award survey, and your timekeeping records are how you show your compliance with those rules.
The basic DCAA timekeeping requirements are meant to help you regulate how you document employee work hours. They aren’t all that complicated or convoluted, but there are a number of them, and it can be easy to lose track of whether or not you’re following them.
Here’s The Basic List of DCAA Timekeeping Requirements:
- You must charge every hour worked exactly to the corresponding charge code.
- Every day, every employee is responsible for logging their own time within the system. A manager cannot record an employee’s time unless the employee is unable to do so themselves (for example, if they are out sick or traveling for work).
- Employees can only log their time after the job or task is actually performed.
- Each employee is only given one timecard or timesheet per work period. Most timekeeping is electronic, not paper.
- All time changes must be made in ink or in digital format and include the following: description of change, reason for change, initial time of change, and date/time of corrected change.
- Employees and their supervisors must each sign off on all timesheets in order to ensure their accuracy.
- Employees must be familiar with your organization’s timekeeping policies and procedures.
- For labor distribution reasons, timesheet records must include the employee’s name and both hours and minutes worked. Monthly labor distribution should be reconciled, making it critical to establish job codes in the tracking system.
It’s a good idea to keep a checklist of these basic DCAA timesheet rules and to regularly go through it to ensure that you’re in compliance with DCAA regulations. Audits will examine various components of your timekeeping processes, including whether you keep precise records, track time daily, and practice extensive reporting. Adhering to a checklist will save you time and headaches in the case of a DCAA audit and help you avoid penalties such as fines and disqualification from future contracts.
Electronic Timekeeping Tips
Electronic timekeeping systems can save you time, energy, and hassle, though they do have some general rules to ensure compliance with DCAA regulations. Luckily, most of these rules are common sense and probably already covered by your timekeeping system, but it’s always good to double and triple-check to be sure. Again, failing a DCAA audit because of timekeeping can be expensive on multiple levels.
Here are the rules for electronic timekeeping systems:
- To deter potential hacking, each employee must have a unique password that they change every six months.
- To prevent any accidental or unauthorized changes, employees are accountable for their timesheets and must keep control of them at all times.
- Employees are not permitted to work for hours that have not yet been compensated under the terms of the aforementioned legislation. They must track their hours on a daily basis, but they are not to do so in advance.
- A contractor’s system needs to have an audit trail function that documents all changes, including the following:
- Dates
- Time Changes
- Employees
- Project Numbers and Charge Codes
- Project/Timesheet Approvals
- Time-Stamped Submissions
- Correction Changes
BOOST Can Help You Stay Compliant With DCAA Timekeeping Regulations
At BOOST, keeping government contractors compliant with ever-evolving government regulations is a big part of what we do. We are thoroughly familiar with all the ins and outs of GovCon compliance, so you can trust our experts to offer strategic advice and peace of mind while guiding you through every detail.
Our team is passionate about helping your business succeed. When you partner with us, you can experience advantages such as:
- Extensive industry experience: We understand the unique challenges and complexities that small and mid-size government contracting businesses face, and we have the experience and knowledge to help you stay within the bounds of regulations so that you don’t get hit with any nasty surprises during a DCAA audit.
- DCAA audit preparation support: Our compliance experts will evaluate your current accounting system and determine what improvements you can make to ensure DCAA compliance and smoother audits. We also stay updated on the latest technological advancements and how they may affect DCAA timekeeping rules to help you remain compliant.
- Cost-effective solutions: Save the time, money, and hassle of hiring an internal accounting team with enough experience when you work with BOOST. We bring extensive knowledge and expertise to your concerns and needs, ensuring you find the most cost-effective solutions for improving your accounting system’s performance and regulatory compliance.
- Timekeeping system improvement: Our team can confirm if your timekeeping system is compliant with government expectations and offer suggestions that can keep you on track. We can also provide training and policy development support so that you can maintain continual compliance with regulations as your business grows.
Ensure DCAA Compliance With Help From BOOST
Improving your timekeeping system’s compliance with DCAA regulations, as well as its efficiency and accuracy, can be simple with assistance from BOOST. Our dedicated experts are ready to support your GovCon’s unique needs. Contact us today to learn more about our accurate and compliant outsourced accounting services designed specifically for GovCon businesses.
