DCAA Timekeeping Requirements for Government Contractors
The Defense Contract Audit Agency (DCAA) sets strict timekeeping requirements for government contractors. Non-compliance can result in disallowed costs, contract termination, or even debarment. Hour Timesheet is designed from the ground up to meet all DCAA timekeeping requirements, helping you maintain compliance with ease.
DCAA Timekeeping Requirements
The following requirements are essential for DCAA compliance:
Daily Time Recording
All employees must record their time daily, not weekly or retroactively. Time entries should be made contemporaneously with work performed.
Employee Attestation
Employees must certify that their time records are accurate and complete with an electronic signature each pay period.
Supervisor Approval
Supervisors must review and approve employee timesheets, verifying accuracy against work assignments and schedules.
Complete Audit Trail
Every change to time records must be documented with timestamps, user IDs, and reason for changes.
Cost Segregation
Direct labor (billable to contracts) must be clearly separated from indirect labor (overhead, G&A).
Job Cost Accounting
Time must be tracked against specific contracts, tasks, CLINs, and cost elements for proper cost allocation.
Correction Procedures
Documented procedures for making timesheet corrections with proper approvals and justifications.
Record Retention
Time records must be retained for the period specified in the contract (typically 3+ years after contract closeout).
Best Practices for DCAA Compliance
Follow these best practices to ensure your organization maintains DCAA compliance:
1. Use DCAA-Compliant Software
Adopt time tracking software specifically designed for DCAA compliance. Generic tools often lack required features like audit trails and attestation.
2. Train Your Employees
Regular training ensures employees understand the importance of accurate daily time entry and the consequences of non-compliance.
3. Conduct Internal Audits
Regularly audit your timekeeping system to identify and correct issues before a DCAA audit finds them.
4. Establish Clear Policies
Document your timekeeping policies and procedures. Make them easily accessible to all employees.
5. Separate Direct and Indirect
Maintain clear job codes and cost categories to ensure proper segregation of direct and indirect labor costs.
How Hour Timesheet Simplifies DCAA Compliance
Hour Timesheet provides all the features you need to meet DCAA timekeeping requirements. Our software is purpose-built for government contractors with compliance in mind.
✓ Automated Daily Reminders
Email notifications remind employees to complete daily time entries, ensuring contemporaneous recording.
✓ Electronic Attestation
Built-in employee signature confirmation at timesheet submission meets DCAA attestation requirements.
✓ Manager Approval Workflow
Configurable approval routing ensures supervisors review and approve all timesheets.
✓ Complete Audit Trail
Every entry, edit, and approval is logged with timestamps and user IDs for full traceability.
✓ Indirect Cost Tracking
Separate tracking for overhead, G&A, and other indirect labor categories.
✓ Mobile Time Entry
Employees can record time from anywhere, ensuring daily compliance even in the field.
Free Setup & Training Included
Every Hour Timesheet subscription includes complimentary setup assistance to ensure your timekeeping system is configured correctly for DCAA compliance. Our team will help you set up job codes, approval workflows, and compliance features. We also provide ongoing training and support at no additional cost.
Frequently Asked Questions
What is DCAA compliance?
DCAA (Defense Contract Audit Agency) compliance refers to meeting the timekeeping and accounting requirements set by the federal government for contractors working on government contracts. Non-compliance can result in disallowed costs, contract termination, or debarment.
How often must employees record their time?
The DCAA requires that employees record their time daily, as work is performed. Recording time weekly or retroactively does not meet compliance requirements.
What happens during a DCAA timekeeping audit?
Auditors will review your timekeeping system, policies, and records. They verify that employees record time daily, that proper approvals exist, that direct/indirect costs are segregated, and that a complete audit trail is maintained.
Does Hour Timesheet guarantee DCAA compliance?
Hour Timesheet provides all the features required for DCAA-compliant timekeeping. However, compliance also depends on your internal policies, procedures, and how employees use the system. We provide free setup assistance to help configure the system correctly.