DCAA Generic Timekeeping and Accounting Policies - Template

DCAA Generic Timekeeping and Accounting Policies - Template

A Template For Your Timekeeping and Accounting Policies

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1. Introduction The government requires that your cost management, accounting, and billing procedures be compliant with the Defense Contracting Auditing Agency (DCAA). While not every time, for larger contracts, the government may require proof that you are DCAA compliant. It depends on the contracting officer running that specific contract. When you've won one or more contracts, you'll eventually receive a call from a government auditor stating they will be coming to your office to perform a DCAA audit.

This template is 2 of 2, the first one being your company's methodology and process for invoice submissions. Look in the Operations Module of Federal Access for this template as well.

2. Template What is provided below is a template for your timekeeping and accounting policies. Feel free to modify as appropriate for your business.

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Title: Policy:

Non-Electronic Employee Time Reporting

POLICY

1. (Insert Company Name) is committed to meeting all of its obligations as a responsible government contractor. Accurate reporting of labor is a critical component in meeting these obligations. Supervisors are expected to contribute to the efforts of the Company in this regard by exhibiting extreme diligence in charging labor accurately.

2. Supervisors and employees must remain familiar with (Insert Company Name) time reporting procedures at all times. Onboarding packages for new hires contain a copy of the rules and procedures for the (Insert Company Name) timekeeping system. Procedures are discussed in the Employee Handbook. Employees are urged to contact their supervisor at any time if they have questions regarding time reporting procedures.

3. While normally employees use the designated electronic timekeeping system based on their work location, emergencies such as unavailability of the electronic system may require use of a paper timesheet.

DEFINITIONS

1. Administrative leave includes:

? Military leave ? Jury duty/attendance as a witness ? Bereavement ? Leave of absence ? Any other time not contract specific (billable only)

2. General and Administrative (G&A) includes activities that are necessary to the overall operation of the business as a whole, but for which a direct relationship to any particular cost objective cannot be shown:

? Top management functions for executive control and direction overall personnel, departments, facilities, and activities

? Typically includes Human Resources, Accounting, Finance, Public Relations, Contract Administration, Legal, and an expense allocation from the corporate home office

3. Business development includes business functions focused on strategy and creating strategic partnerships and longterm relationships with suppliers and customers:

? Intelligence gathering on customers and competitors

? Generating leads for possible sales

? Advertising

? Conferences/expos for potential customers, teammates, and future opportunities

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? Work toward obtaining a new vehicle or ID/IQ contract

? Work toward joining another vehicle or ID/IQ contract as a sub/teammate

? Work toward joint ventures (JV), mergers & acquisitions (M&A), direct equity investment (DEI), and strategic alliances

4. Overhead includes costs that are incurred for or that only benefit an identifiable unit or activity of the internal organization:

? Contract work (preparation/execution of agreements, subcontracts, purchase orders, etc., for a specific contract)

? Security work (clearances per contract requirements, visitor requests for on-site visits, etc.)

? Any work related to a specific contract but not billable to the contract

5. B&P projects or proposal efforts are activities directly related to writing, preparing, submitting, supporting, and negotiating an identified bid or proposal.

6. Direct labor is work that bears a causal or beneficial relationship to a specific contract(s).

7. Exempt employees are full-time employees who are not subject to provisions of the Fair Labor Standards Act (FLSA).

8. Indirect labor is work that cannot be identified with a specific contract(s).

9. Non-exempt employees are employees who are subject to the overtime provisions of the FLSA. Non-exempt employees are compensated for overtime work at a premium rate of one and one-half times their regular pay for hours worked in excess of 40 hours per workweek. All overtime must be authorized in advance in accordance with the Signature/Approval Authority Matrix.

10. A contract account number (charge number) is a number that identifies each contract followed by a labor category title. It is assigned by the Corporate Operations and may be obtained from the supervisor.

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RESPONSIBILITIES

1. It is the responsibility of employees to:

? Obtain from their supervisor, before starting a new assignment, the correct account (charge) number and the maximum amount of time that may be worked on the assignment without additional supervisory approval;

? Record hours as they are worked and not in advance of actual work performance;

? Sign the timesheet at the end of the pay period unless the employee will be on approved leave on the last day of the pay period;

? Ensure that corrections, if any, are properly entered and provide a brief explanation of the correction using the Comments field.

? Ensure, in the event of travel or leave, that the timesheet is signed in time for supervisor approval to meet the established timesheet deadline; and

? Review all corrections made by a supervisor or other appropriate person in the employee's absence and certify, by initialing the explanation in the Comments section, that the corrections are accurate.

2. It is the responsibility of every supervisor to:

? Ensure that employees know and understand the procedures contained in this policy and procedures;

? Ensure that employees are always aware of the correct contract account numbers or indirect account numbers to charge for the work they are performing and, where applicable, the maximum number of hours that may be worked on an assignment without further approval;

? Ascertain that the timesheet of each employee is accurate, completed on a daily basis, and completed on time;

? Verify the accuracy of the information entered on the timesheet by each employee, i.e., that the number of hours recorded and the account numbers charged are correct;

? Ensure that all corrections to a timesheet are entered properly and provide a brief explanation in the Comments section of the timesheet for all corrections made in accordance with "Timesheet Correction Procedure" below.

? Ensure that timesheets are approved by the due date and time; and

? Complete the timesheet on behalf of the employee in the event the employee is unable to do so and if the supervisor can certify the hours are accurate.

3. It is the responsibility of Payroll to:

? Confirm that every employee has submitted a completed and appropriately approved timesheet and advise the supervisor if this does not occur;

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