Key Audit Requirements [Checklist]
- Company timekeeping procedures must be documented in a policy or procedure handbook provided to all employees.All key elements of an adequate time keeping system must be addressed.
- Every employee must record all of his/her time daily. Recording hours worked in advance or days after the fact such as at the end of the week is not acceptable.
- Time must be charged by day and by project or job code as well as by indirect cost accounts (overhead, G&A, B&P, etc)
- All employees must record 100% of time worked on projects to the proper job codes whether working on a government contract or commercial work.
- Employees must record all indirect time not identifiable to a given project to proper indirect cost accounts (overhead, G&A, B&P, etc).
- Employees must record all pto, vacation, sick, holiday and other leave time to the proper accounts.
- All job codes that appear in the timekeeping system should be initiated by accounting or the system administrator. Project codes must be provided to employees authorized to work on a given project.
- All timesheet entries must be the employee’s own. Time must be recorded based on work completed, irrespective of whether the time is billable or non-billable.
- Under no circumstance may an employee work on one project and record time to a different project.
- Under no circumstance may an employee work on indirect tasks and record time as direct costs to a project or vice versa.
- Correction timesheet entries should be made by the employee. Correction timesheets are approved by the employee’s supervisor. Under unusual circumstances where the employee cannot make the changes to timesheets then accounting or the administrator may make such changes with the employee’s consent. All corrected timesheet data must be recorded in a detailed audit trail.
- All employee timesheet data must be approved by the employee’s supervisor.
- Employees should be provided documented DCAA compliance & timekeeping training whether by formal or informal means.
- Time sheets must be maintained for a period of at least 2 years.
- Monitoring of employee timekeeping compliance should be conducted by audit or floor checks randomly throughout the year.
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