New Year’s Resolution #6: I will be floor check ready

January 12, 2023

At a glance

  • All companies with defense contracts can be subjected to a DCAA floor check audit at any time during a contract period.
  • DCAA is not required to provide prior notice before performing a floor check audit.
  • Keep these tips in mind to be prepared at any time for an audit.

The full story:

All companies with government defense contracts may be subject to DCAA (Defense Contracting Audit Agency) floor check audits during a contract period.

Since DCAA can surprise you with the floor check audit anytime without prior notice, here are tips to keep you ready around the clock.

What Is a Floor-check?

Floor check audits are designed to confirm employees’ existence and that adequate timekeeping practices are in place.

The auditor will test the contractor’s compliance with the contractor’s timekeeping policy, internal controls on labor charges, and the employee time records for integrity and accuracy.

Why Do Floor-checks Occur?

Labor is among the largest contract cost recorded to government contracts.

The government wants to ensure billed time is recorded and accumulated correctly. This is essential so that a company can produce an accurate invoice.

What Can I Expect During a Floor-check?

During a floor check, an auditor tours the facility or office space and asks a random selection of employee’s questions about recording their time.

Common questions may include:

  • What is your name and job title?
  • What contract or task do you work on?
  • Can you demonstrate how you charge your time in the system?
  • Who approves your timesheet?
  • Do you approve anyone’s timesheet?
  • When is time submitted?
  • How do you correct mistakes in your time sheet?

If DCAA has called, or you anticipate floor checks, contact an Aprio team member to ensure you have the tools you need and are prepared to pass the audit.

The bottom line

This is not a definitive list of all potential considerations involving floor checks and DCAA audits. For more guidance, contact Aprio’s Government Contract Consulting Services team.

Related Resources/Assets/Aprio.com articles/pages

Aprio Government Contracting
Aprio Government Contracting Compliance

For more guidance preparing for DCAA floor checks, contact Aprio’s Government Contract Consulting Services team.