Time and Labor Charging
INTRODUCTION
All employees are bound by our company Values, Standards of Business Conduct and company policy to put forth their best effort and act fairly and honestly at all times. On any program, commercial or government, misuse of time is just as wrong as the misuse of any of the company's physical assets. Such misuse cuts into our ability to perform our jobs effectively as well as to be productive and competitive.
Additionally, for those working on government contracts, the correct charging of time is the basic element of compliance and a legal as well as an ethical responsibility. Accurate charging of time establishes a record of the effort necessary to accomplish a task or process. Such a record helps determine how employees are paid, how customers are billed, how we estimate our costs when we bid on new work, how contract costs are allocated and how financial and operational performance is reported. Incorrect or careless time charging can have an impact on any of these areas and could subject the company to loss of contracts or the company and employees to other serious consequences.
TIME CHARGING SYSTEMS
Time worked is recorded in a variety of ways throughout the company. Some company elements use a labor or attendance card and others use an electronic or computerized time recording system.
At some company elements, employees record their time on an "exception basis." If there are no variations (personal, sick, vacation, etc.) from the standard 40-hour work week, employees are not required to fill out a card or an electronic record. Such a system puts an added burden on the employee to be careful about recording variations and to be diligent about correcting the record if you remember in a subsequent week that an unrecorded variation occurred.
In any system, the employee is responsible for correctly recording time worked and the supervisor is responsible for overseeing the process and approving the accuracy of the record.
EMPLOYEE RESPONSIBILITIES
Primary responsibility for accurately recording time belongs to the individual employee. It is your responsibility to see that your time is recorded correctly, reflecting proper labor charges, vacation, absence, etc. In signing your timecard each week or reporting your time electronically, you are certifying that it accurately reflects how your time was spent during the week. Your reputation as well as the company?s is on the line. In order to carry out this obligation, you should:
- Record your time after it has been worked every day
- Be accurate and precise in charging what you are working on
- Know where to find documents that authorize your charge numbers
- Follow procedures for completing time-keeping records and correcting errors
- Sign your card or use your electronic signature.
Above all, if you are unsure about any aspect of your obligations, don?t guess . . . ASK!
MANAGER/SUPERVISOR RESPONSIBILITIES
Your supervisor also has responsibilities in this area. The supervisor shares with the employee responsibility for ensuring the accuracy of time-keeping. Specifically, supervisors should:
- Review and approve the time charging records of their employees
- Ensure that all employees under their supervision, especially new employees, know their correct classification as exempt, non-exempt or hourly and the corresponding differences in reporting
- Maintain a workplace environment that encourages honesty and makes employees feel free to ask questions if they?re not sure.
TIMECARD FALSIFICATION OR MISCHARGING
The largest number of contacts made to the company OpenLines, or for that matter to the hotlines of companies in our industry, involve allegations of timecard irregularities. Serious infractions that are substantiated could and have resulted in discipline up to and including termination of employment. Timecard irregularities generally are of two kinds, namely, timecard falsification and mischarging.
TIMECARD FALSIFICATION
Timecard falsification is usually an action taken by an individual employee to knowingly misrepresent time worked for some personal gain. This could take the form of:
- Falsifying the record of hours or overtime hours worked
- Improper use and recording of paid benefits (vacation, personal, sick time)
- Misrepresenting true attendance to avoid sanction or the need to make up time
- Misuse of compensatory time.
MISCHARGING
Mischarging, on the other hand, can be the act of one or more employees. In this case, the proper number of hours may be worked but they are knowingly not charged to the correct contract. Mischarging can take the form of:
- A supervisor directing an employee to charge to the wrong account. (The employee may or may not be aware it?s the wrong account)
- Charging labor for an overrun on a fixed-price contract to a cost-plus contract
- Splitting costs between a number of contracts or accounts without being able to verify the actual time spent on each
- Charging a single job when multiple jobs have been worked
- Charging overhead activity (training, downtime) to a contract or vice versa.
Timecard falsification or mischarging can have a serious impact on your job and career and a significant impact on the company. If you are asked or directed to mischarge, you must get help from management, from your local Business Conduct Officer (BCO), or call the Sector OpenLine or the Corporate OpenLine.
Accurate time charging depends on you.
- Do you know how to complete your timecard or make an electronic entry accurately?
- Do you know the correct charge numbers for the projects assigned to you?
- Do you need to keep track of how much time remains on a particular charge number?
- Do you know whom to ask if you have questions about completing your timecard?
- Do you know with whom to speak if you suspect mischarging or timecard falsification, or if you are being told to incorrectly charge time?
- Do you know what the rules are with regard to compensatory time and how to record it?