DCAA Floor Check Practice

What is a Floor Check?

DCAA floor checks are unannounced visits where DCAA representatives may visit the company and talk to employees to check whether everything is in order. This practice ensures government contractors maintain compliant timekeeping systems.

Purpose

Verification Goals:

• Confirm employees understand timekeeping requirements
• Verify time tracking procedures are followed in practice
• Check that systems match documented policies
• Identify discrepancies between policy and actual practice
• Ensure no time fraud or mischarging occurring

Random Validation:

• Unannounced nature prevents preparation
• Real-time assessment of actual practices
• Direct employee interviews reveal true processes
• Spot-checks on physical records and systems

What Auditors Check

Employee Interviews:

• How do you record your time?
• Do you track all hours, including non-contract time?
• Who approves your timesheet?
• Can you change your timesheet after submission?
• Do you understand which project codes to use?

System Verification:

• Audit trails for time entry modifications
• Supervisor approval processes
• Total time accounting implementation
• Record retention practices
• Digital security and access controls

Compliance Requirements

To pass floor checks, contractors need:

Employee Training:

• All staff understand timekeeping requirements
• Clear procedures for time entry
• Knowledge of project charging codes
• Awareness of compliance importance

System Capabilities:

• Digital audit trails
• No time rounding
• Required supervisor approvals
• Secure record retention
• Total time accounting

Documentation:

• Written policies and procedures
• Training records
• Approved timekeeping system documentation
• Regular compliance reviews

Consequences of Failure

Immediate:

• Required corrective actions
• Increased audit scrutiny
• Suspension of cost reimbursements

Long-term:

• Contract termination risk
• Disqualification from future contracts
• Financial penalties
• Legal liability

Preparation Strategy

Since floor checks are unannounced:

• Maintain continuous compliance, not just during audits
• Train all employees regularly
• Use DCAA-compliant software
• Conduct internal floor checks
• Document all policies and training
• Practice explaining processes clearly

2026 Context

Floor checks remain a critical compliance tool for DCAA, making robust, user-friendly timekeeping systems essential for government contractors.