TEGL11-10acc.pdf

ETA Advisory File Text

RESCISSIONS None EXPIRATION DATE Continuing CLASSIFICATION Reporting Subaward Executive ompensation C CORRESPONDENCE SYMBOL OFAM OGCM EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR 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 an d 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 2 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 in formation about Federal awards to be made available to the public via a single searchable website. USASpending.go v 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 re porting 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 g rant 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 e quals 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. 3 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 Report ing 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 info rmation. 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 FFATA.reporting dol.gov . ETA grantees with questions about FFATA reporting should submit inquiries to FFATA.reporting dol.gov . 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.