Every year the US Defense Contract Audit Agency audits thousands of contracts with the US government. If you have ever been part of such an audit you will know that the DCAA places a particular emphasis on verifying timesheets associated to workers working on projects that they oversee. It is not enough to have a good time and attendance record. The DCAA must validate that hours billed to government contracts were spent on those projects and not on other work. A complete task-based timesheet is required that encompasses all work.
In 2017, the DCAA audited over $281 billion in defense contract costs. The DCAA is not restricted to defense contracts alone. Their standards and audits are also used by NASA, the DoE, Homeland security and other agencies.
While the DCAA deliberately does not endorse or certify software products, and instead focuses on an auditable process, the standards they require are well known.
TimeControl has included DCAA compliant functionality for many years and has been selected by clients on numerous occasions to be used for DCAA audit compliance.
HMS maintains a resource portal with a number of useful tools and links to aid in becoming DCAA compliant when using TimeControl. The portal is free and is located at: dcaa.timecontrol.com.
If I need to make a correction in an already closed timesheet, can I do so? And, if so, can I see what was changed?
Yes. This has been a part of TimeControl since version 1.0 and it is something that HMS has spent a lot of time on. The function allows you to both remove hours and add hours as you adjust and you can force those changes to balance so we’ve called the function Debit/Credit just as you would in an accounting system. The Debit/Credit function occurs only once the main organizational approval has completed. You can identify every line that has been adjusted and as it must comply with the Defense Contractor Audit Agency, TimeControl must be able to re-create a timesheet as it was first entered at the time by the employee and for each change that occurs. Using the optional balanced Debit/Credit, you can ensure that any adjustments to the timesheet result in the same total that was approved by the supervisor. This allows project managers to redistribute hours from one task to another or even one project to another but not to affect the timesheet totals that may have already been sent to payroll and HR.
Debit/Credit is one of the functions that makes TimeControl completely auditable. For more information about Debit/Credit and how it is used in the Matrix Approval Process, see www.timecontrol.com/use-cases/matrix-approvals.
In the historical timesheet, TimeControl optionally shows the source user of each line and, in the background, we can see the time-date stamp for when the line was saved and posted. When you look at adjustments you can instantly see any reversed lines and their corresponding adjusting lines.
For those wondering, DCAA stands for the US “Defense Contract Audit Agency”. The DCAA has set a number of standards for contracts paid for by the US government which include standards for timesheets. These criteria are used not only by the US Defense Department but also by Homeland Security, NASA, the Department of Energy and other public sector organizations who find the criteria to contain good business practices.
However, the DCAA is very clear that it does not endorse or “certify” any product. It has a required process and a range of required criteria which some timesheet products might be able to fulfill and others not.
TimeControl does fulfill the DCAA standards and we keep up to date on the criteria when they are changed. You can find more on this on the TimeControl site in the DCAA Use-Case solutions portal.