Chicago State University
773.995.2000

Federal Funding Accountability and Transparency Act (FFATA)

Federal Funding Accountability and Transparency Act (FFATA):  The Federal Funding Accountability and Transparency Act (FFATA or Transparency Act - P.L.109-282, as amended by section 6202(a) of P.L. 110-252) signed on September 26, 2006, requires the Office of Management and Budget to maintain a single, searchable website that contains information on all Federal spending awards. For more information please click here 

The FFATA Subaward Reporting System is the reporting tool Federal prime awardees (i.e., prime contractors and prime grants recipients) use to capture and report subaward and executive compensation data regarding their first-tier subawards to meet the FFATA reporting requirements. Prime contract awardees will report against sub-contracts awarded and prime grant awardees will report against sub-grants awarded. The subaward information entered in FSRS will then be displayed on www.USASpending.gov  associated with the prime award furthering Federal spending transparency.

Reporting Timeline for Contractors

Prime Contractors awarded a Federal contract or order that is subject to Federal Acquisition Regulation clause 52.204-10 (Reporting Executive Compensation and First-Tier Subcontract Awards) are required to file a FFATA subaward report by the end of the month following the month in which the prime contractor awards any subcontract greater than $30,000. This reporting requirement will be phased-in (see below):

  • Phase 1: Reporting subcontracts under federally-awarded contracts and orders valued greater than or equal to $20,000,000, reporting starts now.
  • Phase 2: Reporting subcontracts under federally-awarded contracts and orders valued greater than or equal to $550,000, reporting starts October 1, 2010.
  • Phase 3: Reporting subcontracts under federally-awarded contracts and orders valued greater than or equal to $25,000, reporting starts March 1, 2011.
  • Phase 4: Reporting subcontracts under federally-awarded contracts and orders valued greater than or equal to $30,000, reporting starts October 1, 2015.

Although the requirement to report subawards is being phased-in at certain dollar levels, if you would like to start reporting prior to the start date for your subcontracts, the system is available to you for reporting.

Reporting Timeline for Prime Grant Recipients

Prime Grant Recipients awarded a new Federal grant greater than or equal to $25,000 as of October 1, 2010 are subject to FFATA sub-award reporting requirements as outlined in the Office of Management and Budgets guidance issued August 27, 2010. The prime awardee is required to file a FFATA sub-award report by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $25,000.

Reporting Subawards and Executive Compensation

a. Reporting of first-tier subawards.

  1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report each action that obligates $25,000 or more in federal funds that does not include Recovery funds (as defined in section 1512(a)(2) of the American Recovery and Reinvestment Act of 2009, Pub. L. 111–5) for a subaward to an entity (see definitions in paragraph e. of this award term).
  2. Where and when to report.
    1. You must report each obligating action described in paragraph a.1. of this award term to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
    2. For subaward information, report no later than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2010, the obligation must be reported by no later than December 31, 2010.)
  1. What to report. You must report the information about each obligating action that the submission instructions specified and posted at http://www.fsrs.gov .

b. Reporting Total Compensation of Recipient Executives.

  1. Applicability and what to report. You must report total compensation for each of your five most highly compensated executives for the preceding completed fiscal year, if—
    1. the total federal funding authorized to date under this award is $25,000 or more;
    2. in the preceding fiscal year, you received—
      1. 80 percent or more of your annual gross revenues from federal procurement contracts (and subcontracts) and federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and
      2. $25,000,000 or more in annual gross revenues from federal procurement contracts (and subcontracts) and federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and
    3. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at the Executive Compensation page of the SEC website.)
  2. Where and when to report. You must report executive total compensation described in paragraph b.1. of this award term:
    1. As part of your registration profile at the Central Contractor Registry. (NOTE: CCR transitioned into the System for Award Management (SAM))
    2. By the end of the month following the month in which this award is made, and annually thereafter.

c. Reporting of Total Compensation of Subrecipient Executives.

  1. Applicability and what to report. Unless you are exempt as provided in paragraph d. of this award term, for each first-tier subrecipient under this award, you shall report the names and total compensation of each of the subrecipient’s five most highly compensated executives for the subrecipient’s preceding completed fiscal year, if—
    1. in the subrecipient’s preceding fiscal year, the subrecipient received—
      1. 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and
      2. $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and subawards); and
    2. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at the Executive Compensation page of the SEC website.)

 

  1. Where and when to report. You must report subrecipient executive total compensation described in paragraph c.1. of this award term:
    1. To the recipient.
    2. By the end of the month following the month during which you make the subaward. For example, if a subaward is obligated on any date during the month of October of a given year (i.e., between October 1 and 31), you must report any required compensation information of the subrecipient by November 30 of that year.

d. Exemptions

If, in the previous tax year, you had gross income, from all sources, under $300,000, you are exempt from the requirements to report:

  1.  
    1. Subawards,and
    2. The total compensation of the five most highly compensated executives of any subrecipient.

e. Definitions.

For purposes of this award term:

  1. “Entity” means all of the following, as defined in 2 CFR part 25:
    1. A Governmental organization, which is a state, local government, or Indian tribe;
    2. A foreign public entity;
    3. A domestic or foreign nonprofit organization;
    4. A domestic or foreign for-profit organization;
    5. A Federal agency, but only as a subrecipient under an award or subaward to a non-federal entity.
  2. “Executive” means officers, managing partners, or any other employees in management positions.
  3. “Subaward”:
    1. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient.
    2. The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see Sec. ll .210 of the attachment to OMB Circular A–133, ‘‘Audits of States, Local Governments, and Non-Profit Organizations’’).
    3. A subaward may be provided through any legal agreement, including an agreement that you or a subrecipient considers a contract. 
  1. “Subrecipient” means an entity that:
    1. Receives a subaward from you (the recipient) under this award; and
    2. Is accountable to you for the use of the federal funds provided by the subaward.
  2. “Total compensation” means the cash and noncash dollar value earned by the executive during the recipient’s or subrecipient’s preceding fiscal year and includes the following (for more information see 17 CFR 229.402(c)(2)):
    1. Salary and bonus.
    2. Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2004) (FAS 123R), Shared Based Payments.
    3. Earnings for services under non-equity incentive plans. This 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.
    4. Change in pension value. This is the change in present value of defined benefit and actuarial pension plans.
    5. Above-market earnings on deferred compensation which is not tax-qualified.
    6. Other compensation, if the aggregate value of all such other compensation (e.g. severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or property) for the executive exceeds $10,000.