1. AMC Time Charging Time Charging Basics The new AMC Overhead Rate

2. CCAT Timekeeping Procedures CCAT uses Paychex Time and Labor web-based system to track employee’s time. Employees are required to enter time worked completely and accurately. The appropriate supervisor must review and approve the employee’s time. Employees access the time and labor system utilizing their own unique password. Passwords must be changed every 90 days. CCAT employees are required to record their time worked at the end of every day or first thing the next morning. Timesheets are not to be filled out in advance of hours work. The only exception to this is PTO and Floating Holiday time. Employees must fill out their own timecard. No one else including their supervisor should fill out or change their timecard. Job codes are established for all programs/contracts in the timekeeping system and are assigned to each employee for only the programs for which they work. Job code assignments for employees are determined by the program supervisor, who notifies the accountant to assign the job code to the employee. Supervisors are responsible for making sure that employees understand the work scope for each project so that time can be charged correctly. Each supervisor is responsible for the accuracy of time charges for their staff and will take appropriate action to ensure accurate time reporting and elimination of errors. If an employee is uncertain what project/contract number to charge, he/she is to see his/her supervisor. If an employee needs to change their timesheet after it has been approved by the supervisor, then the employee must see their supervisor to unapprove the time that was entered incorrectly. The employee can then change their time or delete it and re-enter, but must put a reason for the change in the notes field. The supervisor can then approve the change. If an employee has to change their time after it has been approved and payroll has been generated, then the employee must print their time card, note the change and reason, initial the change, have their supervisor initial the change and give to the accountant to reclassify the time to the appropriate job. Supervisors approve their staff timesheets weekly by noon on the following Monday. If a supervisor is not available to approve an employee timecard, then the CFO or CEO may approve. Note: Timecards are to be completed daily. They must be completed accurately and true to the best of your knowledge. This is a government contracting requirement. It is critical that CCAT employees follow this policy. CCAT management checks from time to time to see if employees are filling out their timecards on a daily basis.

3. CCAT Timekeeping Procedures YOU are required to enter time worked completely and accurately. Record time at the end of each day or first thing next morning. Supervisors are responsible to ensure employees understand the scope for each project so that time can be charged correctly. Supervisors are responsible for the accuracy of their staff’s charges. Job codes are established for all programs. If uncertain what number to charge, see your supervisor.

4. CCAT Timekeeping Procedures Timecards are to be completed daily Charges must be accurate and true to the best of your knowledge This is a government contracting requirement –Critical that CCAT employees follow the policy –CCAT management checks!

5. Cost Accounting Standards 401: Consistency Accumulating and Reporting Costs 402: Consistency in Allocating Costs Allocation of cost to cost objective Direct and indirect allocation of cost

6. New OH rate at the AMC Determining Direct vs Indirect Proper charging to programs Goals of NALI vs Commercial programs OH charge number will be provided today!

7. Direct Charges Work which benefits a single customer Directly related to a specific contract SOW Proper direct charging permits: –Accurate profit analysis –Better estimating of future jobs

8. Direct Charge Examples Performing a Laser or Machining task required by a customer contract –Includes: Planning, preparing, research Set-up Material purchased for the job Actual laser or machining work Job specific cleanup Reporting or other customer paperwork

9. Overhead Charges Benefits more than one AMC customer Not directly identified in a contract Proper overhead charging permits: –Reasonable and consistent spread of AMC expenses to all customers (via direct labor) –Reimbursement for indirect activity –Moving AMC toward a post-NALI model

10. Overhead Charge Examples Maintaining the facility and equipment Rearrangement AMC Administration General CCAT activities –All-hands meetings –Annual reviews Supplies Tooling

11. NALI NALI broad in scope –Develop Laser technology to benefit A/F SALA, AMPI, Additive Mfg, Acoustic Monitoring Investigate new equipment and methods –Machining techniques to benefit aerospace manufacturing base Initial MAL setup, outreach, demonstrations –Scanning development

12. AMC Reconstruction Overhead –Demolition –Rearrangement of existing equipment/service NALI –Shipping, rigging new equipment –Connecting new equipment to service drops Capital –New facility equipment/services Potential new fume extraction system Service to new areas

13. Quiz Yes, Really! 1.Who is responsible for your proper time charging? 2.What do you do if you are unsure what to charge? 3.Direct or overhead? a.Changing machine tool to prepare for a new job b.Removing scrap metal generated by a job c.Performing machine maintenance between jobs d.Preparing a consigned machine for return to owner

14. Questions / Discussion Labor vs Machine hours Job materials: inventory vs direct to job How will OH rate impact commercial job price?