DCAA (Defense Contract Audit Agency) floor checks are an audit procedure performed by DCAA auditors to verify the accuracy and completeness of a contractor’s labor records by physically observing employees performing their work on the job site or “on the floor.”
During a DCAA floor check, auditors will visit the contractor’s job site to observe the work being performed and compare it to the contractor’s labor records. This may include verifying that employees are working on the contracts and tasks for which they are being paid, and that their time and attendance records are accurate. The auditors may also review the contractor’s labor policies and procedures to ensure compliance with applicable regulations.
The purpose of a DCAA floor check is to verify that the contractor’s labor costs are accurately and appropriately allocated to the correct contracts and tasks, and to identify any discrepancies or potential overbilling. By physically observing employees on the job site, the DCAA can ensure that the contractor is complying with applicable regulations and is billing the government accurately.
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