FGI had reviewed the published guidance on FFATA reporting on sub-awards, based on our reading we determined the agreement with UK was exempt. We also consulted with our attorney and received similar advice that the agreement was exempt from reporting requirements. Thus, the cause is not a result of...
FGI had reviewed the published guidance on FFATA reporting on sub-awards, based on our reading we determined the agreement with UK was exempt. We also consulted with our attorney and received similar advice that the agreement was exempt from reporting requirements. Thus, the cause is not a result of insufficient controls but a different interpretation of the requirements.
Context: Part 170—Reporting Subaward and Executive Compensation Information
Section 170.110(b) Exceptions.
(1) None of the requirements in this part apply to an individual who applies for or receives a Federal award as a natural person (i.e., unrelated to any business or nonprofit organization he or she may own or operate in his or her name).
(2) None of the requirements regarding reporting names and total compensation of a non-Federal entity's five most highly compensated executives apply unless in the non-Federal entity's preceding fiscal year, it received—
(i) 80 percent or more of its annual gross revenue in Federal procurement contracts (and subcontracts) and
(ii) $25,000,000 or more in annual gross revenue from Federal procurement contracts (and subcontracts) and Federal financial assistance awards subject to the Transparency Act, as defined at § 170.320; and
(3) The public does not have access to information about the compensation of senior executives, unless otherwise publicly available, through periodic reports led 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.
Additionally, Appendix A to Part 170—Award Term
Reporting Subawards and Executive Compensation
e.4. Subaward
ii. “The term does not include your procurement of property and services needed to carry out the project or program.”
The requirements for this award required a collaboration between a nonprofit entity and a university. The subaward with UK is required to carry out the project or program, further limiting the requirement to report.
HRSA Guidance: HRSA also has a PowerPoint that addresses FFATA and their responsibility in communicating with organizations receiving an award through HRSA. In this presentation HRSA defines how applicants and awardees are informed of the FFATA requirements.
• The Notice of Funding Opportunity will include reference to the FFATA requirement.
• The Notice of Award (NOA) will include reference to FFATA
• HRSA website will include information
• Published on Electronic Handbook (EHB)
• Technical assistance calls, workshops, webinars, etc.
There was no reference in our NOA to the requirement to file an FFATA with UK, which was clearly described in our proposal and the budget justification. The EHB does not include a reference to completing this task. Thus, based on our reading of the requirements, and the lack of guidance from HRSA, we determined that we did not need to report UK sub-award on the FFATA.
Ongoing Practice: We subsequently filed the report indicated by FFATA protocol for UK. We will seek additional clarification from HRSA regarding agreements that need reporting for any other sub-agreement award that we establish going forward.