DCAA Compliance

Clockwise is designed to support timekeeping requirements for organizations subject to the Defense Contract Audit Agency (DCAA) standards. This article explains what DCAA timekeeping requires and how Clockwise helps you meet those requirements.

What Is DCAA?

The DCAA audits federal contractors to ensure labor costs charged to government contracts are accurate, allowable, and properly supported. One of the most scrutinized areas is timekeeping. A compliant system must demonstrate that:

Employees record time daily and for all hours worked.

Time is recorded against specific contracts or cost objectives.

Timesheets are approved by a supervisor.

Any corrections are documented with a reason.

A complete audit trail exists for all timesheet activity.

How Clockwise Supports Compliance

Daily Time Entry

The timesheet grid lets employees enter hours for each individual day. Each cell is a separate record, making it easy to capture time daily.

Charge Code Assignment

Every hour must be attributed to a specific charge code (contract, project, or indirect category). Clockwise requires a charge code selection before hours can be saved — there is no "miscellaneous" bucket.

Lock on Submit

Once an employee submits a timesheet, it is locked for editing. This prevents after-the-fact changes without a paper trail. If a correction is needed, the approver must reject it back to the employee.

Edit Reasons (Audit Trail)

If an employee modifies hours that were previously saved, Clockwise requires them to enter an edit reason explaining the change. All edits and their reasons are stored permanently and visible to approvers and admins in the audit history.

Supervisor Approval

Every timesheet must be approved by a designated supervisor (group approver) or admin before it is considered final. Clockwise enforces the requirement that approvers review the full detail before the Approve button becomes active.

Timesheet Events Log

Every status change — submission, approval, rejection — is recorded as a timestamped event. This log is accessible to admins via Reports > Audit History and cannot be modified.

Admin Override Tracking

When an admin approves a timesheet outside the normal approval group, this override is flagged and recorded. The audit trail distinguishes standard approvals from administrative overrides.

Best Practices

Remind employees to enter time daily, not at the end of the week.

Configure approval groups so every employee has a designated supervisor.

Export and archive audit history reports periodically for your records.

Use separate charge codes for each contract and for indirect categories (overhead, G&A, B&P).

Clockwise provides the tooling to support DCAA compliance, but compliance ultimately depends on how your organization uses the system. Consult your contracts or legal team for guidance specific to your situation.