Dcaa Floor Check Audit

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Dcaa floor check audit. Floor checks are dcaa s method for real time audit testing. Often deficient timekeeping is the reason for failing a dcaa defense contract audit agency audits. It is the contractor s responsibility to ensure that the timekeeping system is reliable and mitigates the risk of fraud and waste. Per the dcaa audit program for major contractor labor floor checks or interviews the objectives of labor interviews are to evaluate the accuracy of contractor employee labor hour charges to contracts indirect accounts or other cost objectives while the purpose of floor checks is to verify the existence of employees and evaluate the.

The purpose is to ensure employees are at work employees perform the assigned job classification and time labor is charged to the proper cost objective. Dcaa s role in the financial oversight of government contracts is critical to ensure dod gets the best value for every dollar spent on defense contracting. A dcaa floor check is intended to validate that labor costs are accurately and timely identified in the accounting system as either direct or indirect. Before dcaa begins the floor check the contractor s timekeeping policy will be reviewed by the auditor.

What are dcaa floor checks. Designed to review a contractor s compliance with timekeeping policies labor charge controls and integrity and accuracy of employee time reporting the floor check is a true test of teamwork. Dcaa compliant timekeeping checklist best practices. Further reading and resources government websites.

For service based contractors labor is the largest piece of what is billed to the government so it is of major concern to be monitored by the dcaa. Adequate timekeeping practices are crucial to successfully securing or maintaining a government contract accounting system. Floor check audits are designed to test contractor compliance with the contractor s timekeeping policy controls on labor charges and to check employee time records for integrity and accuracy. Dcaa audits are called floor checks and may also involve email or phone interviews with your employees to determine how well they know your time tracking procedures and whether those procedures are being followed.

Auditors will want to validate that. In these time check or floor check audits the auditors are going to randomly select employees of your company and ask them simple questions to see how timesheet procedures are performed. Dcaa provides audit and financial advisory services to dod and other federal entities responsible for acquisition and contract administration. That knock at the door is the defense contracting audit agency dcaa dropping by for a floor check.

Companies should have well documented policies and procedures for timekeeping. As ever with dcaa compliance it pays to know the details.