DCAA Labor Floor Check

April 20, 2022

If you have Government Cost-type contracts, you’re subject to labor floor-checks by the Defense Contract Audit Agency (DCAA). As often as once every quarter, DCAA may arrive at your company, unannounced, to interview employees on timekeeping procedures.

What is the purpose?

  • Verification that employees exist (company is not charging for hours not worked or for “ghost employees”)
  • Labor charges are to the appropriate cost objective (project or contract)
  • Verification that employees are performing in their assigned job classification
  • To determine if the recorded labor hour charges are a fair representation of the work performed

What every employee needs to know:

  • The location of the timekeeping policy and how to access the policy
  • Annual training on the policies and procedures is required
  • Always complete your timesheet daily, at the end of the work day
  • Do not complete your timesheet in advance
  • Nobody shall complete or change your timesheet without your acknowledgement
  • The process, procedure, and approvals required for making changes to a timesheet
  • You, alone, are responsible for the accuracy and completeness of your timesheet

Got questions? Connect with an experienced Aprio advisor today.

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