TIMESHEETS Surviving an Audit Louise M. Peabody, CPA Watkins, Meegan, Drury & Co., L.L.C. Donna Kilbourn Unanet Technologies, Inc.

Time Sheet Audits Types of Audits Pre-Award Surveys Post Award Audit Observations of Work Areas (Floor Checks)

Time Sheet Audits Why Important to Government Allowable Costs Reasonable Costs Allocable Costs

Time Sheet Audits Policies and Procedures General Procedures Accounting and HR IT Department Timekeeping

Time Sheet Audits Security Procedures and Objectives Logical Security Policies & Procedures Physical Security

Time Sheet Audits Timekeeping Policies and Procedures Importance of function Employee responsible for accuracy and timeliness Supervisor responsible for oversight Responsibility for communicating assignments

Time Sheet Audits Timekeeping Policies and Procedures Recording of all time including uncompensated overtime Frequency of recording Frequency of transmitting Approval process Process for approving and documenting corrections

Time Sheet Audits Time Sheet Compliance Prepared timely Prepared accurately Proper jobs/contracts/tasks charged Approval by knowledgeable supervisor

Time Sheet Audits Unanet Compliance Features Individual timesheets with password access Users limited to authorized projects or tasks Allows blocking of advance charging Approvers can be blocked from editing users timesheet

Time Sheet Audits Unanet Compliance Features Notification process Ability to monitor delinquent time sheets Audit trail for changes to “saved time” Audit trail for time sheet approval process

Time Sheet Audits What to Expect Labor and Timekeeping - General Overall integrity of controls Employee awareness training Work authorization Policies and Procedures Floor Check

Time Sheet Audits What to Expect Labor and Timekeeping - General Reconciliation to labor distribution Uncompensated overtime Direct, indirect and unallowable Overtime authorization Pay rate authorization

Time Sheet Audits What to Expect Labor and Timekeeping Approval and review of labor transfers On-line adjustments

Time Sheet Audits What to Expect Floor Checks Observe system Examine timesheets Interview employees Interview supervisors/project managers

Time Sheet Audits What to Expect Floor Checks – Timesheet sample Requests list of employees Selects sample employees Requests printed timesheets Reviews for completion, charging, etc.

Time Sheet Audits What to Expect Floor Checks – employee interview How do you know what to charge? Who tells you what/how to charge Where do you charge if not working on a contract Do you record all of your hours How do you enter time when computer is not accessible

Time Sheet Audits Summary Policies and Procedures Adherence to Policies and Procedures Management Attitude Monitoring and Review Security Systems and Controls