Federal subaward and executive pay reporting

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2010/TEGL11-10acc.pdf

                                                          CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                 Reporting/Subaward/Executive
                                                          Compensation
               ADVISORY SYSTEM
                                                          CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                        OFAM/OGCM
             Washington, D.C. 20210                       DATE
                                                          November 15, 2010


ADVISORY:          TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 11-10

TO:                STATE WORKFORCE AGENCIES
                   STATE WORKFORCE LIAISONS
                   ALL STATE AND LOCAL WORKFORCE BOARDS
                   ALL DIRECT ETA GRANT RECIPIENTS

FROM:              JANE OATES /s/
                   Assistant Secretary

SUBJECT:           Sub-award and Executive Compensation Data Reporting Requirements
                   Under the Federal Funding Accountability and Transparency Act (FFATA)

1. Purpose. To inform all Employment and Training (ETA) workforce system agencies of
additional Office of Management and Budget (OMB) reporting requirements under the FFATA
effective October 1, 2010.

2. References.
     The Federal Funding Accountability and Transparency Act of 2006, Public Law 109-282,
       120 Stat. 1186, S. 2590 (enacted September 26, 2006) and subsequent 2008 amendments
       31 USC 6101
     Memorandum for Senior Accountable Officials Over the Quality of Federal Spending
       Information, dated April 6, 2010, Open Government Directive – Federal Spending
       Transparency:
       http://www.whitehouse.gov/sites/default/files/omb/assets/open_gov/OpenGovernmentDire
       ctive_04062010.pdf
     Memorandum for Senior Accountable Officials, dated August 27, 2010, Open Government
       Directive – Federal Spending and Transparency and Compensation Data Reporting
       http://www.whitehouse.gov/sites/default/files/omb/open/Executive_Compensation_Reporti
       ng_08272010.pdf
     75 Fed. Reg. 55663, (Sept 14, 2010), Requirements for Federal Funding Accountability
       and Transparency Act Implementation (Interim final guidance)
     75 Fed. Reg. 55671, (Sept 14, 2010), Financial Assistance Use of Universal Identifier and
       Central Contractor Registration
     Training and Employment Guidance Letter (TEGL) No. 29-08, dated June 10, 2009

3. Background. The FFATA requires full disclosure to the public of Federal spending
information by all entities and organizations receiving Federal funding under Federal grant

 RESCISSIONS                                              EXPIRATION DATE
 None                                                     Continuing
awards. The intent of the Act is to: 1) have Federal spending information available to the public;
2) make the information easily accessible; and 3) reduce wasteful spending by the Federal
government. As required by FFATA and subsequent OMB guidance, recipients of Federal awards
are required to report sub-award and executive compensation information for certain entities and
organizations. The legislation also requires information about Federal awards to be made
available to the public via a single searchable website. USASpending.gov has been designated as
the website to be used to display data about grants, loans, cooperative agreements and other forms
of Federal financial assistance.

The FFATA Sub-award Reporting System (FSRS) is the reporting system used by the Federal
prime awardees to electronically report first tier sub-award information and executive
compensation. The FSRS started accepting sub-award and executive compensation data on
October 29, 2010. The sub-award information entered into FSRS by the prime awardee will be
accessible on www.USASpending.gov.

4. Requirements.

A. Federal Grant Awardees Subject to the Sub-award and Executive Compensation
Reporting Requirements
Under the April, 6, 2010, OMB Memorandum, entitled: Open Government Directive – Federal
Spending Transparency, all direct recipients (prime recipients) of Federal grants and cooperative
agreements with an award date on or after October 1, 2010, fall under FFATA reporting
requirements. Prime recipients of Federal grants and cooperative agreements will be required to
report sub-award information and executive compensation information, including the total
compensation and names of the top five executives of the prime recipient and of the first tier sub-
recipients in the FSRS database.

The FFATA reporting requirements apply to grants and cooperative agreements that are equal to
or over $25,000. If the initial award is below $25,000 but subsequent grant modifications result in
a total award equal to or over $25,000, the award will be subject to the reporting requirements as
of the date the award equals or exceeds $25,000. If the initial award equals or exceeds $25,000
but funding is subsequently de-obligated such that the total award amount falls below $25,000, the
award continues to be subject to the reporting requirements.

For ETA, this means new Federal grants and cooperative agreements awarded on or after
October 1, 2010, where the funding is equal to or over $25,000 are subject to the sub-award
and executive compensation reporting requirements.

B. When Are Prime Grant Awardees to Report Sub-award and Executive Compensation
Information?
    To meet the FFATA reporting requirement, the prime recipient must report information
      related to a sub-award by the end of the month following the month the sub-award is
      obligated. Below are two examples:
          o For a grant awarded on October 2, 2010, the prime recipient has until November
              30, 2010, to report the sub-award and executive compensation information.
          o For a grant awarded on October 31, 2010, the prime recipient has until November
              30, 2010, to report the sub-award and executive compensation information.



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C. Systems Registrations Required by the FFATA
All grantees subject to the reporting requirements must register with the following systems:
     FSRS
     Dun and Bradstreet, Data Universal Numbering System (DUNS)
     Central Contractor Registration System (CCR)
Instructions on registration with DUNS and CCR were provided in TEGL 29-08.
Instructions for registering with FSRS are available on https://www.fsrs.gov/.

D. Federal Awards That Are Not Subject To the FFATA Reporting Requirements
    Under the August 27, 2010, OMB Memorandum, entitled: Open Government Directive –
      Federal Spending Transparency and Sub-award and Compensation Data Reporting,
      new or existing grants that are funded by the American Recovery and Reinvestment Act
      are not subject to FFATA reporting requirements. These awards and related sub-awards
      will continue to be reported through FederalReporting.gov.
    The following types of awards also are not subject to FFATA and are not normally used by
      ETA, but the information is included to provide complete OMB requirements:
           Transfers of title between Federal agencies of Federally owned property;
           Federal inter-agency transfers of award funds;
           Cooperative Research and Development Agreements (CRDA)
           Federal awards to individuals who apply for or receive Federal awards as natural
              persons (i.e., unrelated to any business or non-profit organization he or she may
              own or operate in his or her name);
           Federal awards to entities that had a gross income, from all sources, of less than
              $300,000 in the entities' previous tax year; and
           Federal awards, if the required reporting would disclose classified information.

E. Webinar – Sub-award and Executive Compensation Reporting
   A webinar is scheduled for November 16, 2010, from 1:00 pm - 2:00 pm to provide an
   overview of the new OMB reporting requirements and the FSRS reporting system.
   Registration details are available at https://www.workforce3one.org.

F. Questions
   In order to provide answers to more frequently asked questions, ETA has established an email
   account for FFATA related inquiries: [email protected]. ETA grantees with
   questions about FFATA reporting should submit inquiries to [email protected].
   Replies will come from the same mailbox address as soon as answers are available.

5. Action Requested. All affected grantees must report in accordance with OMB established
guidelines and timeframes.

6. Inquiries. Questions concerning this advisory should be directed to your appropriate Regional
Office.




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