Recording Time and Expenses

  1. We have exceeded the allocated hours on a sales order. Is it okay to charge to an overhead account to avoid billing the customer for an overrun?
    1. No. Work must be charged accurately, cost overrun or not.
  2. I don't know what sales order to use for the job I'm working on. Can I use another number and correct the charges later?
    1. No. Take the time to get the correct sales order. Ask your manager or check the authorizing paperwork.
  3. I am working on an Independent Research and Development (IRAD) project. The work is similar to that being done under a government contract. Shouldn't I charge some of my time to IRAD and some to the contract?
    1. No. Northrop Grumman must carefully distinguish Non-Contractual Technical Activity (NCTA), including IRAD and Bids and Proposals, from work done under government contracts. Because NCTA may complement contract research, the possibilities for inaccuracies are increased, and extra caution should be used.
  4. In my department, jobs are given a work order with a certain number of hours in which they are to be completed. I've been asked to start a new job on a work order that is incomplete - it still has two hours on it. Is this OK?
    1. No. This results in inaccurate records. It could compromise work standards and result in incorrect cost charges.
  5. What's the difference between "allowable" and "unallowable" costs?
    1. The words "allowable" and "unallowable" refer to whether or not an expense may be passed along to our government customers. (Some expenses, for example, wine at a business lunch or company reception, may not be charged as an expense to a government customer.)
  6. May I mix business and vacation?
    1. Yes, but this must be clearly indicated and approved in advance on your Travel Authority which is specifically required if you plan to mix personal and business travel. Northrop Grumman will not reimburse expenses incurred as a result of your personal travel.
  7. I'm a salaried exempt employee. Why should I record the number of hours I work every day, as long as I put in 40 hours each week?
    1. Depending on your location's time reporting system, you must record all hours worked or report your exceptions to a regular 40-hour work week. Northrop Grumman policy may allow you to use hours in excess of eight in one day to "offset" a partial day's absence within the same week. You are responsible for ensuring that your record of hours worked each day is accurate.

Questions to Ask Yourself