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

2. Time Sheet Audits lpeabody@wmdco.com2 Types of Audits Pre-Award Surveys Post Award Audit Observations of Work Areas (Floor Checks)

3. Time Sheet Audits lpeabody@wmdco.com3 Why Important to Government Allowable Costs Reasonable Costs Allocable Costs

4. Time Sheet Audits lpeabody@wmdco.com4 Policies and Procedures General Procedures Accounting and HR IT Department Timekeeping

5. Time Sheet Audits lpeabody@wmdco.com5 Security Procedures and Objectives Logical Security Policies & Procedures Physical Security

6. Time Sheet Audits lpeabody@wmdco.com6 Timekeeping Policies and Procedures Importance of function Employee responsible for accuracy and timeliness Supervisor responsible for oversight Responsibility for communicating assignments

7. Time Sheet Audits lpeabody@wmdco.com7 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

8. Time Sheet Audits lpeabody@wmdco.com8 Time Sheet Compliance Prepared timely Prepared accurately Proper jobs/contracts/tasks charged Approval by knowledgeable supervisor

9. Time Sheet Audits lpeabody@wmdco.com9 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

10. Time Sheet Audits lpeabody@wmdco.com10 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

11. Time Sheet Audits lpeabody@wmdco.com11 What to Expect Labor and Timekeeping - General Overall integrity of controls Employee awareness training Work authorization Policies and Procedures Floor Check

12. Time Sheet Audits lpeabody@wmdco.com12 What to Expect Labor and Timekeeping - General Reconciliation to labor distribution Uncompensated overtime Direct, indirect and unallowable Overtime authorization Pay rate authorization

13. Time Sheet Audits lpeabody@wmdco.com13 What to Expect Labor and Timekeeping Approval and review of labor transfers On-line adjustments

14. Time Sheet Audits lpeabody@wmdco.com14 What to Expect Floor Checks Observe system Examine timesheets Interview employees Interview supervisors/project managers

15. Time Sheet Audits lpeabody@wmdco.com15 What to Expect Floor Checks – Timesheet sample Requests list of employees Selects sample employees Requests printed timesheets Reviews for completion, charging, etc.

16. Time Sheet Audits lpeabody@wmdco.com16 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

17. Time Sheet Audits lpeabody@wmdco.com17 Summary Policies and Procedures Adherence to Policies and Procedures Management Attitude Monitoring and Review Security Systems and Controls