DCAA compliant timekeeping is a cornerstone of government contracting, ensuring accurate labor cost tracking and maintaining accountability in project execution. The Defense Contract Audit Agency (DCAA) outlines strict requirements for timekeeping to safeguard the integrity of federal funds.
Understanding the Basics of DCAA Timekeeping Compliance
To comply with DCAA standards, contractors must implement timekeeping practices that align with guidelines from the Federal Acquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS), and DCAA’s Contract Audit Manual (CAM). These standards focus on ensuring labor costs are properly recorded and associated with project objectives.
Key Features of DCAA Compliant Timesheets
- Authentication: Timesheets must be linked to individual employees to prevent errors or fraud.
- Daily Entries: Labor hours must be recorded daily, reducing inaccuracies.
- Audit Trails: All changes to time records must be tracked and the reasons for changes must be documented.
- Certifications and Approvals: Employees certify their timesheets, and supervisors must review and approve them.
Why Daily Labor Recording Matters
Daily time entries minimize errors and provide a reliable foundation for billing and cost allocation. Failing to record labor daily can result in inaccurate reporting and non-compliance risks.
Steps to Ensure DCAA Timekeeping Compliance
- Use DCAA compliant timekeeping software that is integrated with your accounting system.
- Educate employees on the importance of accurate timekeeping.
- Conduct periodic internal audits to ensure adherence to guidelines.
Implementing these practices reduces the risk of non-compliance, ensuring your organization is audit-ready and able to maintain its credibility as a government contractor.
For a deeper dive into timekeeping compliance, access our white paper, Mastering the Art of Timekeeping: Navigating Compliance in Government Contracting.
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