Imagine securing the necessary funding so your research and development could finally become a product? It’s possible thanks to the federal government programs SBIR and STTR and Hour Timesheet. Together SBIR and SBTTR are responsible for bringing some of the most innovative technological ideas to the international market. But without a DCAA compliant time tracking software such as Hour Timesheet, these companies would not have had the opportunity to present their ideas.
What are the SBIR and SBTTR?
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are designed to encourage American-owned businesses to participate in federal research or research and development with the opportunity for commercialization. The SBIR and STTR have developed an awards-based program to explore their technological potential and then provide the necessary incentive to profit from its marketing. By including small businesses in the country’s research and development industry, high-tech innovation will be inspired. The country will be swept up in an entrepreneurial spirit to meet specific research and development needs.
What does DCAA compliant mean?
‘DCAA’ is an acronym and stands for the “Defense Contract Audit Agency.” It is the government agency responsible for the auditing of the department of defense and its contractors. It is also often brought in by other government agencies to provide financial and accounting services in the event they need help with their auditing procedures.
This is precisely what happens with the SBIR and STTR programs. When small businesses are awarded the money necessary to move from Phase I (Concept Development Level) to Phase II (Prototype level), the federal government requests an audit of all participating small businesses. They undergo a DCAA pre-award “survey,” otherwise known as an audit.
In the first phase, they usually expect small businesses to have a basic time tracking system in place because Phase I awards are relatively small. In Phase II, there is more money at stake, approximately $1 million per award as opposed to $150,000 in Phase I. The contracting officers need to be confident you’ve accurately estimated your indirect rate and can accurately differentiate indirect from direct costs.
How is Hour Timesheet DCAA compliant?
1. Detailed audit trail
It’s one thing to say that your timekeeping software is DCAA compliant, but it’s certainly another to explain what that means. At Hour Timesheet, our audit trail lists a detailed activity log of every contractor’s activity. It includes their username, IP address, time, and date stamp of all the entries made to the timesheet capturing both hours worked and paid-time-off entries.
2. Automated Daily Reminders
DCAA compliance states that employees must enter and record their time daily. Hour Timesheet will send employees who forget to do this an automatic daily reminder. It’s quick and easy to set up and can be a great tool for those who sometimes let their day “get away from themselves.”
3. Track Indirect (non-billable) Time
DCAA requirements are precise that all hours much be tracked in compliant timekeeping system. Hour Timesheet allows users to track both direct and indirect cost entries within the timesheet. Assign non-billable codes to users, including overhead, business development, and others.
4. Multiple Supervisor Signatures
According to regulations, two signatures are required on each timesheet. One from the employee and the second must come from the supervisor. Hour Timesheet allows for signatures at both of those levels.
5. Authorized Charges
Hour Timesheet includes the ability to limit employees only to see charge codes on which they are authorized to work. This feature is accessible to both full-time employees and timesheet information for contractors.
6. Reason Required
Employees who don’t enter time daily will be prompted to enter a reason for the late entry. Hour Timesheet also requires the user to enter a reason for editing previously, inputted data on a timesheet.
Hour Timesheet, STTR & SBIR
The federally funded STTR & SBIR programs are an excellent way to fund ideas and inventions by small businesses here in the United States that may never have the opportunity to market otherwise. Part of that process is ensuring their business remains DCAA compliant. That is where Hour Timesheet can help with our DCAA compliant software. We’re here to help American innovation move forward.