When most people hear the word audit, they think of accounting. It is important to remember, however, that the government can audit companies for contracts that include labor category qualifications. If an employee does not qualify for a particular labor category, the company will have to reimburse the government for the difference between the amount billed and the amount that should have been billed depending on the actual labor category qualification. The following process can be used to handle these labor category qualifications.
Maintain Good Records
You need to keep a log for each employee. At a minimum, the log should include the following:
- Candidate’s or employee’s name
- Contract number
- Desired labor category
- Qualification requirements (education and experience)
- Education achieved (high school, associate’s degree, bachelor’s degree of arts or science, master’s degree, doctorate)
- Years of experience
- Approved (yes/no)
- Reviewer for accountability reasons
- Date of approval or nonapproval
Complete a form that includes all of this information and attach the form to the candidate’s or the employee’s resume. Forward the completed form and resume to human resources before a candidate is hired or an employee is promoted. Keep electronic and hard copies of the documents for the contractual records. Create a separate section for each contract or task order.
Know Which Information to Include
Personnel issues can be tricky, and it’s imperative that you adhere to current employment laws as well. Certain things should never be included on employee or candidate documentation. This is why it may be best to work with an expert to ensure that you are compliant not only for the government contract but also for general employment guidelines.
This documentation will help you if your business is audited by the government. It can protect you and your team. Before you get started, however, it’s best to talk to an expert.
We welcome the opportunity to put our accounting expertise to work for you. To learn more about how our firm can help advance your success, don’t hesitate to contact Kathy Corcoran at (302) 254-8240.
©2024
