Are You Following The DCAA Requirements For Timekeeping Compliance?

Federal timekeeping policies are contained in the Federal Acquisition Regulation. I point this out to shine a light on a very important topic!

Establishing accurate timekeeping allows for a clear, detailed audit trail and will enable easier DCAA compliance. As a federal contractor, you must establish acceptable timekeeping procedures and a reporting system that allows you to track daily labor costs on a per-project basis. The government wants to make sure taxpayer funds awarded to contractors are being applied efficiently, without waste or fraud, and that careless accounting of labor is avoided.

Some key points to consider:

• An approved accounting system is an essential requirement before a Government Cost-Reimbursable Contract can be awarded.

An Adequate Timekeeping System is one of the primary factors of a compliant accounting system that will be reviewed by DCAA for adequacy before and after contract award.

• Compliant timekeeping systems utilized by Government Contractors are required to demonstrate accurate labor distribution to both general ledger control accounts and to related Government contracts. This is an essential requirement for both the accounting and billing systems.
• Deficiencies noted by DCAA in the labor reporting, accounting, or billing systems may cause unnecessary delays in the award of Government Contracts, or the inability to be awarded subject contracts. Deficiencies found after award can result in delays in processing public vouchers or disapproval of a contractor’s entire Billing System.

Accurate timekeeping starts with the right culture about tracking time, with your company reporting time properly.   This is a very important aspect of federal government contracting.

Do you have timekeeping questions?  Contact us for more information or call us at 603-881-8185.  We are happy to help.