Authority/Reference(s) Federal Funding Accountability and Transparency Act of 2006;; Requirements for FFATA Implementation; Uniform Grant Guidance (UGG);OMB Circular A-133
Revision Date September 15, 2015

Policy

DFPS staff and subrecipients must adhere to the guidance and processes in this policy and related federal and state regulations or communications related to compliance with the reporting requirements of the Federal Funding Accountability and Transparency Act.

The Federal Funding Accountability and Transparency Act of 2006 and associated 2008 amendments (the Transparency Act or FFATA) mandates federal agencies and prime contractors and prime grant and cooperative agreement awardees (collectively prime awardees) to report sub-award and executive compensation data.

Prime recipients or awardees are recipients who directly receive federal funds (such as DFPS). Subrecipients are recipients who receive federal funds via the prime recipient. Contractors receiving a DFPS sub-award must update or obtain a Dun and Bradstreet Data Universal Numbering System (DUNS) number. The federal government uses this DUNS number to track funds.

The Office of Management and Budget (OMB) defines a sub-award as a legal instrument (including a contract) to provide support for the performance of any portion of the substantive project or program for which the award was received that the prime recipient awards to an eligible sub-recipient, or that a sub-recipient at one tier awards to a sub-recipient at another tier (although only first-tier sub-awards are subject to the reporting requirements). Sub-awards do not include procurement of property and services needed to carry out the project or program. For the OMB's definition of subrecipient, see: Uniform Grant Guidance (UGG).

FFATA, under the 2006 legislation, requires the OMB to provide full disclosure to the public of federal spending through a single searchable database that identifies all entities or organizations receiving federal funds beginning in fiscal year (FY) 2007. The public website, which can be found at www.USAspending.gov, is searchable by recipient, state, congressional district, federal government agency/department/program, and type of product or service. The website content is supported through the FFATA Sub-award Reporting System (FSRS) found at www.fsrs.gov. For further information, inquiries may be submitted to the DFPS FFATA mailbox.

Exemptions

Sub-awards that are valued at less than $25,000 are not subject to the FFATA sub-award reporting requirements. Moreover, entities with gross incomes less than $300,000 in the previous tax year are exempt from sub-award reporting requirements. Other exemptions include federal awards to individuals (unrelated to any business or non-profit organization) as well as classified information.

Prime recipient responsibility (DFPS)

DFPS is the prime recipient of a federal award and is responsible for reporting sub-award information. DFPS staff must report sub-award data directly and does not have the option of requiring sub-recipients to report data themselves. However, sub-recipients must provide DFPS with all required information. If DFPS does not make a sub-award for a particular award, it does not have to file a report.

In addition, DFPS must have a DUNS number and maintain an active registration in the System for Award Management (SAM), for new federal grants as of October 1, 2010. DFPS can only make sub-awards  to entities that have DUNS numbers (the $25,000 threshold does not apply to this requirement). For further information on obtaining a DUNS number, refer to the DUNS Number website.

DFPS is responsible for reporting sub-award and executive compensation data on a rolling basis, as awards are made. These requirements only apply to new mandatory and discretionary grants of at least $25,000, awarded on or after October 1, 2012 and any additional allotments issued after this date.. If a new award is initially below $25,000 but subsequent grant modifications result in a total award equal to or more than $25,000, the award will be subject to the reporting requirements as of the date the award exceeds $25,000.

The Department must report information related to a sub-award by the end of the month following the month the sub-award or obligation was made. For example, if a contract was effective on October 10, 2012, DFPS has until November 30, 2012, to report the award. In other words, all awards made during October must be reported by November 30, 2012.

Also, DFPS must report its own executive compensation data by the end of the month following the award. For example, if a federal agency awards a grant to DFPS on October 31, 2012, the department must report executive compensation data, if applicable, by November 30, 2012.

Additionally, DFPS as the prime recipient is responsible for first-tier sub-award (subrecipient DFPS contractor) reporting, which includes entity information, sub-award description/title, and date of award (more detailed information is included in data reporting section below).

For assistance with grants related questions please email the DFPS Grants mailbox.

Below is a summary of the reporting requirements:

Who?

Reports what?

Federal Agency

Prime award information for awards $25K or more

Prime recipient (DFPS)

Company information
Executive compensation
Contract sub-award for awards $25K or more

First-tier sub-awardee (subrecipient DFPS contractor)

Company information
Executive compensation
Grant sub-award information for awards $25K or more

Second-tier sub-awardee/Sub-contractor

Grant sub-award or subcontract information for awards $25K or more

Subrecipient reporting requirements

Entities receiving a subrecipient contract under a new DFPS award must provide the following elements of information to the department by the effective date of the contract and annually thereafter.

Sub-awards less than $25,000:

  • All subrecipients are required to register in the System for Award Management (SAM) site or any future federal procurement system replacing it
  • Subrecipient Data Universal Numbering System (DUNS) number, and its parent if applicable
  • Congressional district of subrecipient
  • Location and primary place of performance information, including: street address,state, country, city, zip code

Sub-awards greater than or equal to $25,000:

  • All subrecipients are required to register in the System for Award Management (SAM) site or any future federal procurement system replacing it
  • Subrecipient Data Universal Numbering System (DUNS) Number, and its parent if applicable
  • Congressional district of subrecipient
  • Location and primary place of performance information, including: street address, state, country, city, zip code
  • Subrecipient officers names and total compensation (five highest paid officers) if all three criteria are met:
    • 80% or more of subrecipient’s annual gross revenue are from federal awards (contracts, sub-contracts and federal financial assistance); and
    • Subrecipient’s annual gross revenue from federal awards is $25 million or more; and
    • Subrecipient’s officer names are not publicly available and the public does not have access to this information about the compensation of the senior executives of the entity through the Securities and Exchange Commission (SEC) as described in further detail in this memorandum.

Total compensation is defined as:

  • Cash and non-cash value earned by the executive during the past fiscal year including the following:
    • salary and bonus
    • awards of stock, stock options, and stock appreciation rights
    • earnings for services under non-equity incentive plans. Does not include group, life, health, hospitalization, or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees
    • changes in pension value
    • above-market earnings on deferred compensation which are not tax qualified
    • other compensation >$10,000. For example, severance, termination payments, value of life insurance paid on behalf of the employee.