DCAA Timekeeping Software Overview
Did you know....a submitted timesheet becomes a legal document of the company.
DCAA is a stickler for compliance and employee timekeeping is no exception. The goal of the DCAA is to ensure that government contracts meet a certain standard and that the taxpayer is getting good value for their money. Audits are prevent any fraudulent billing to the government.
The process for documenting employee work hours is important. Often there is no paper trail to record how or when the time is recorded. This reason alone is why the timesheet audit log is one of the key features in any dcaa compliant solution.
Many organizations have tools that record billable or direct labor time daily. What is most often is overlooked is the ability to track both direct and indirect cost. Small businesses commonly do not know what the time keeping system requirements are or are provided incorrect information in regards to DCAA compliance. Please refer to the list of key requirements below to ensure your government contract is ready for a DCAA (defense contracting auditing agency)
Employee Timekeeping Responsibilities
- Employee time must be recorded daily
- Employees must account for all hours worked (both billable and non-billable)
- Employees must record their own time
- Employees must sign or "submit" each timesheet
- Employees should not be able to enter or charge time to billable job codes in advance
- Employees must record all leave time to proper accounts (sick, pto, holiday, vacation)
- Employees must have access to record correction time cards with a documented audit trail. All timesheet changes must capture a detailed log including a time and data stamp of each edit made.
- Each timesheet must be signed my a supervisor and/or manager within your organization
- Companies are required to document and communicate timekeeping procedures to each employee
- Company administrators must initiate all project names or job codes that appear in the system
- Companies are required to provide timekeeping training to employees and supervisors
- Companies must retain employee time sheets for a minimum of 3 years
- Companies should conduct periodic monitoring of compliance with routine floor checks
- Protection should be initiated to limit access to project codes to employees approved to work on a given project.
Use of an audit trail feature documenting all transactions in the timekeeping system is required. This includes all employees, time charges, dates, project numbers, time stamped submission and approvals. For corrections, it records changes made, employees involved including who made the change, date, approvals, reason for change etc.
If your company wins a government contract, the DCAA compliant timekeeping rules apply to everyone in the company. It doesn’t matter how large your operations are, it’s important that you are compliant. It’s your responsibility to ensure that you are compliant to the rules above.