FAR and DCAA Compliant Time Keeping

For government contractors, it is very important to track and maintain their time keeping records that are adequate for audit purposes.

The following is a list of items found in the DCAA Contract Audit Manual - which can be found at:

The document is also attached to this article.


If you look in the DCAA Contract Audit Manual Chapter 5 you will find very specific requirements that the DCAA will look for in a timekeeping system (Para 5-908 & 909).  This requires procedures for the proper use, controls, preparation of and recording of actual times worked.  DCAA auditors will be looking to see that:

  1. All hours worked for all employees are recorded (this includes all direct and all indirect work)
  2. The proper job assignments are made by different individuals than are performing the work (to the extent practical)
  3. Daily recording of time worked by the employee
  4. An audit trail for any & all changes exists
  5. Employee review and approval of the time recorded
  6. Supervisor review and approval of the employee's time recorded
  7. Evaluation of labor distribution
  8. Reconciliations between the distribution summary and the labor charges
  9. Procedures to assure all hours worked (even if they are not billable) are recorded


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