Setting Up and Using DCAA Compliance Functionality in PeopleSoft Expenses

This chapter provides an overview of DCAA compliance functionality in PeopleSoft Expenses and discusses how to:

Set up and configure PeopleSoft Expenses for DCAA compliance.
Set up overage accounting for expense reports.
Use DCAA compliance functionality for time reporting.
Manage employee notifications and acknowledgements.

Understanding DCAA Compliance Functionality in PeopleSoft Expenses

Employees working on government projects are required to report time according to their organization’s negotiated government contract. When you enable DCAA compliance functionality, employees must report their project and personal time by the cutoff that you establish for their general ledger business unit. In addition, employees cannot report project time for future dates and can be restricted in the type of personal time that they report for days in the future. DCAA regulations also define allowable amounts by location for valid expense types. If an expense type amount exceeds the allowable spending amount, Expenses books the difference to a different account using the overage accounting feature.

Setting Up and Configuring PeopleSoft Expenses for DCAA Compliance

This section discusses how to:

Enable and disable DCAA compliance functionality.
Set up DCAA compliance rules.
Enable and disable future personal time reporting.

Pages Used to Set Up and Configure PeopleSoft Expenses for DCAA Compliance

Page Name	Object Name	Navigation	Usage
Installation Options - Expenses	INSTALLATION_EX	Set Up Financials/Supply Chain, Install, Installation Options, Expenses	Enable DCAA compliance requirements and overage accounting.
Expenses Definition – Business Unit 1	BUS_UNIT_TBL_EX1	Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Definition, Business Unit 1	Disable DCAA compliance requirements at the general ledger business unit level for business units that are not required to be compliant.
Expenses Definition – Business Unit 2	BUS_UNIT_TBL_EX2	Set Up Financials/Supply Chain, Business Unit Related, Expenses, Expenses Definition, Business Unit 2	Set up DCAA compliance rules, such as time report submission requirements and disabling future project time reporting.
Employee Profile - Organizational Data	EX_EE_ORG_DTA2	Travel and Expenses, Manage Employee Information, Update Profile	Disable DCAA compliance requirements for the employee.
Time Reporting Codes	EX_TRC_EX	Set Up Financials/Supply Chain, Product Related, Expenses, Management, Time Reporting Codes Travel and Expenses, T and E Administration Center, Define Expense System, Additional Required Data, T&L Time Reporting Codes	Enable and disable future entry time reporting.
Time Reporting Code	EX_TRC_MAP_TBL	Set Up Financials/Supply Chain, Product Related, Expenses, Mapping, Time Reporting Code Travel and Expenses, T and E Administration Center, Define Expense System, Additional Required Data, Maintain Time Reporting Codes	Enable and disable future entry time reporting.

Enabling and Disabling DCAA Compliance Functionality

There are three levels in which you can enable or override DCAA compliance functionality:

Installation Options - Expenses page

In the Expenses Options group box, select the DCAA Enabled check box to indicate that you want PeopleSoft Expenses to enforce DCAA audit requirements.
Expenses Definition – Business Unit 1 page

PeopleSoft Expenses provides an override at the general ledger business unit level and displays the Disable DCAA check box only if you selected the DCAA Enabled check box on the Installation Options - Expenses page.

When you add a new general ledger business unit, PeopleSoft Expenses defaults to what you have set up at the Installation Options - Expenses page. If DCAA is enabled, the Disable DCAA check box is enabled.
Employee Profile - Organizational Data (EX_EE_ORG_DTA2) page

PeopleSoft Expenses displays the Disable DCAA check box only if DCAA is enabled on the Installation Options - Expenses page and is not disabled for the employee’s general ledger business unit. An administrator may override DCAA for an employee by selecting this check box, meaning that the employee will be exempt from meeting DCAA requirements.

When processing time reports, PeopleSoft Expenses references the values set at the installation, general ledger business unit, and employee profile levels. This table summarizes when PeopleSoft Expenses displays or hides the DCAA check boxes:

Level	Flag	Selected	Selected	Selected	Selected
Installation	Enable DCAA	Yes	Yes	Yes	No
GL Business Unit	Disable DCAA	No	No	Yes	Does not Display
Employee Profile	Disable DCAA	No	Yes	Does not Display	Does not Display
DCAA Compliance Required		Yes	No	No	No

See Defining Expenses Installation Options.

See Configuring a Business Unit for PeopleSoft Expenses.

See Maintaining Employee Organizational Data.

Setting Up DCAA Compliance Rules

Access the Expenses Definition – Business Unit 2 page.

Employees who work on government projects are required to report their time by a threshold set by their organization. This threshold is negotiated as part of the government contract and applies to all employees assigned to work on projects for that government agency. You can define the cutoff time differently for each general ledger business unit.

If employees report their time late or makes changes after the cutoff date, you can require them to enter a comment to explain their tardiness or the reason for the change. You also control whether employees can enter future time or restrict them to enter only time that they have worked.

The Expenses Definition – Business Unit 2 page enables you to apply DCAA compliance rules to general ledger business units. These fields on the PeopleSoft Expenses Definition – Business Unit 2 page are specific to DCAA compliance rules:

Project Time Options

Disable Entry of Future Project Hours

Select to prevent employees in the business unit from entering future project time on their time reports.

DCAA Compliance Rules

Submission Cutoff days	Enter how many calendar days employees have to report their time for a particular date. A zero in this field means that time must be reported the same day the employee worked it.
Time	Enter the time by which reporting should be completed and saved or submitted.
Time Zone	If not populated, PeopleSoft Expenses uses the application server time as the clock to determine the cutoff time for saving or submitting time reports. If populated, employees are required to save or submit their time reports by the time indicated for the given time zone. For example, if you set up the submission time and time zone for 6:00 p.m. Eastern Time (U.S.), employees in California are required to save or submit their time reports by 3:00 p.m. Pacific Time.
Require Comments for Changes	Select to require comments when employees report their time late or make changes after the cutoff date.

Note. You must enter information in the fields listed above if PeopleSoft Expenses displays the Disable DCAA check box and it is not selected for the general ledger business unit.

See Defining Specifications for a Business Unit.

Enabling and Disabling Future Personal Time Reporting

Access the Time Reporting Code pages.

The Time Reporting Code (EX_TRC_EX and EX_TRC_MAP_TBL) pages enable you to prohibit reporting future personal time on time reports. Select the Disable Future Entry check box for a time reporting code to prohibit employees from entering personal hours on a time report if the date entered on the report is after the current date.

Setting Up Overage Accounting for Expense Reporting

PeopleSoft Expenses enables you to record the allowable portion of expenses to a unique chart of accounts while the unallowable portion of the expense is recorded to a separate chart of accounts.

This section lists the pages used to set up overage accounting for expense reporting.

Pages Used to Set Up Overage Accounting for Expense Reporting

Page Name	Object Name	Navigation	Usage
Installation Options - Expenses	INSTALLATION_EX	Set Up Financials/Supply Chain, Install, Installation Options, Expenses	Select the Allow Overage Accounting check box to enable PeopleSoft Expenses to process amounts exceeding approved limits for expense types.
Expense Types 2	EX_EXPENSE_TYPES2	Set Up Financials/Supply Chain, Product Related, Expenses, Purchase, Expense Type Select the Expense Types 2 tab. Travel and Expense, T and E Administration Center, Define Expense System, Accounting Data, Expense Type Select the Expense Types 2 tab.	Enter a different Account ChartField to record amounts employees spend over their approved limits for expense types.

Using DCAA Compliance Functionality for Time Reports

This section discusses how to:

Report future time.
Change time report information.
Enter comments for late entries or changes.
Log time reporting entries, changes, and violations.

Pages Used to Use DCAA Compliance Functionality for Time Reports

Page Name	Object Name	Navigation	Usage
Time Report Summary	TE_TIME_LINES	Employee Self-Service, Travel and Expense Center, Time Report, Create Travel and Expenses, Travel and Expense Center, Time Report, Create	Enter project and personal time.
Submit Confirmation	TE_SUBMIT_CONFIRM	Click the Submit button on the Time Report Summary page.	Enter an explanation as to why you are submitting the time report late or made changes.

Reporting Future Time

Access the Time Report Summary page.

When you select the Disable Entry of Future Project Hours check box on the Expenses Definition – Business Unit 2 page, PeopleSoft Expenses prevents employees in the business unit from entering future time on their time reports. PeopleSoft Expenses disables the future days in the project time entry grid.

If you select the Disable Future Entry check box for a time reporting code on the Time Reporting Code (EX_TRC_EX and EX_TRC_MAP_TBL) pages, PeopleSoft Expenses prohibits employees from entering personal hours on a time report if the date entered on the report is after the current date.

As displayed in the page shot above for a time report with a period end date of March 4, 2005, Kenneth Schumacher can only enter project time for the current date, February 28, 2005. In the personal grid, PeopleSoft Expenses enables him to enter vacation time for March 4; however, PeopleSoft Expenses does not enable Kenneth Schumacher to enter future time for illness.

Changing Time Report Information

When you enable DCAA, PeopleSoft Expenses tracks entries or changes made by someone other than the owner of the time report. If approvers or auditors make any changes, PeopleSoft Expenses prompts them during the confirmation of the approval action taken to enter a reason for their changes. The authority to make changes to time reports is determined when approvals is configured during system setup. You can configure PeopleSoft Expenses to prevent approvers from making changes to time reports, forcing them to send the reports back to the owners for revisions.

Entering Comments for Late Entries or Changes

Access the Submit Confirmation page.

When employees submit time reports late or enter changes after the cutoff date, PeopleSoft Expenses prompts them to enter an explanation as to why they are late or made changes.

Logging Time Report Entries, Changes, and Violations

To ensure that organizations are in compliance with their government contracts, DCAA compliance requires that PeopleSoft Expenses maintain a log of entries, changes, and violations made by employees, authorized reporters, approvers, and auditors. PeopleSoft Expenses records the transaction logs in the EX_AUDIT_DCAA record that includes some or all of the following fields:

User ID of the person who makes the time report entry.
Current server date and time when the transaction record was saved.
Key information from the time report record.
Key information from the transaction ID.
Log entry reason (LOG_DCAA_REASON).
Comments.

Time Entry by an Authorized Reporter

An authorized reporter is someone with authority to enter or change information on time or expense reports on behalf of an employee. DCAA compliance requires that PeopleSoft Expenses log when an authorized reporter makes an entry in a time report prior to submitting the report and prior to the cutoff time. PeopleSoft Expenses logs this information:

User ID of the person who makes the time report entry.
Current server date and time when the authorized reporter saved the time report.
Key information from the time report record, such as the transaction ID.
Log entry reason (LOG_DCAA_REASON = E).

Time Reporting Changes and Violations

DCAA compliance functionality in PeopleSoft Expenses creates a log entry when you:

Report time late (LOG_DCAA_REASON = L).

Whether an employee or an authorized reporter misses the cutoff for reporting time, PeopleSoft Expenses records the late entry. The time that PeopleSoft Expenses compares against the cutoff time and logged is the time the report was save or submitted.
Change reported time (LOG_DCAA_REASON = C).

If after the initial save and prior to submission a time entry is changed past the cutoff time, PeopleSoft Expenses logs the change.
Delete pending time reports (LOG_DCAA_REASON = D).

If an employee or authorized reporter deletes a pending time report, PeopleSoft Expenses logs the transaction as a deleted action.
Change time report or enter time late (LOG_DCAA_REASON = B).

If and employee or authorized reporter changes hours or makes a new entry after the cutoff time, PeopleSoft Expenses logs the information.

Time Reporting Changes by Approvers and Auditors

During confirmation of the approval action, if approvers or auditors made any changes to a time report, PeopleSoft Expenses prompts them to enter a reason and logs the transaction as Approval Changes (LOG_DCAA_REASON = A).

Time Adjustments After Submission

PeopleSoft Expenses logs adjustments to a prior period as Changed (LOG_DCAA_REASON = C).

Managing Employee Notifications and Acknowledgements

This section discusses how to:

Use notifications and acknowledgements.
Process DCAA notifications.

Page Used for Employee Notifications and Acknowledgements

Page Name	Object Name	Navigation	Usage
DCAA Notifications	RUN_EX_DCAA	Travel and Expenses, Manage Employee Information, Process DCAA Notifications	Set up and run reminder notifications, past due notifications, and notifications of time and expense reports requiring acknowledgements.

Using Notifications and Acknowledgements

Employees are responsible for the information on their time reports when they submit them. Employees can submit their own time reports or have an authorized reporter submit them on their behalf. When an authorized reporter submits a time report on behalf of the employee, the owner of the time report receives a notification that they must acknowledge. PeopleSoft Expenses generates a notification to the report owner when:

An authorized reporter submits the time report for approval, and
The submission date is the same or after the period end date, or
The submission date is before the period end date but daily hours have been entered to the end of the period, and
The report is not a prior period adjustment, and
The report owner is an active employee.

There are certain cases where partial time reports are submitted before the period end date. Partial time report submission may be required if, for example, a month-end falls in the middle of a time reporting period and your organization wants to complete the billing for projects for the month. If an authorized reporter submits a partial time report, PeopleSoft Expenses does not send out a notification until the time report is submitted at the end of the time reporting period. The only exception to this is if the authorized reporter submits a time report with future personal time. In this case, PeopleSoft Expenses checks if hours have been entered for all business days up to the period end date to determine if it needs to generate a request for acknowledgement.

Processing DCAA Notifications

Access the DCAA Notifications page.

You can create a process to manage all DCAA-related notification types. You can run the process for all general ledger business units enabled for DCAA compliance or you can select one or more business units. Before sending an email notification to employees, PeopleSoft Expenses verifies that they are active and required to be DCAA compliant.

Select All Business Units	Select to include all business units. If not selected, you must enter individual business units in the GL Business Unit List grid.
Pending Acknowledgement	Select to send email notifications to remind employees if there are time and expense reports waiting for their acknowledgement.
Send Reminder	Select to send email notifications to remind employees of upcoming deadlines.
Past Due Notice	Select to send email notifications to remind employees of missed deadlines and to save time for a day if none is saved by the cutoff time.