The following is an excerpt from the Journyx webinar, “5 Steps to DCAA Compliance with Time Management.” The full webinar covers how time management systems can streamline your operations and help you pass a DCAA audit should you face one in the future.

The DCAA (Defense Contract Auditing Agency) is tasked with auditing companies that work as government contractors. Although not every company who works as a contractor will be audited, it is important to prepare just in case. Audit failure can result in serious setbacks and can even derail a project if too many issues arise. So, what is the DCAA looking for, and how can you prepare for a potential audit?

Proof of Daily Time Entry

In many companies it is not uncommon for employees to get behind on tracking their time. In some instances they may not track their time at all, or they may be doing so using an inefficient system. While this presents a number of problems in terms of daily business, it is particularly damaging should the DCAA decide to audit said company. That’s because the DCAA requires proof of daily time entry, and to be more specific, requires it no later than 9 a.m. for the previous day. Obviously, if time entry is an afterthought at your company, this will present a real issue. And also remember the proof part of time entry. Shoddy timesheets may not cut it for the DCAA, so make sure your system is transparent and verifiable to avoid problems.

Documentation of Change

While editing or otherwise altering timesheets might be normal routine, either for housecleaning purposes or simply correcting previous entry mistakes, the DCAA requires any changes to a timesheet to be accounted for. So, this means that any edits need to be accounted for and documented. For instance, if an individual wished to change the number of hours worked for the previous day, they would need to make a note of the alteration and explain why it was made. While not every auditor will require this level of detail, having it baked into your time management system will act as insurance should such documentation prove necessary.

...A Specific Timekeeping System?

While the DCAA does have time tracking standards, it does not require a specific time tracking system. Thus, companies are free to use any system so long as it meets DCAA requirements. There are some systems that work better for this than others. In choosing a timekeeping system to use for DCAA compliance, try and find one that allows flexibility, automatic reporting, and a customizable approvals system. In short, choose one that will allow you to address any concerns that the DCAA might have.

Check out the original webinar, “5 Steps to DCAA Compliance with Time Management”, to learn specific techniques for dealing with the DCAA, as well as tutorials to structure Journyx software to meet your DCAA time entry needs.