1. F EDERAL F UNDING A CCOUNTABILITY AND T RANSPARENCY A CT R EPORTING Utah Governor’s Office of Planning and Budget December 9, 2010

2. Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Reporting Requirements When does reporting begin? How long do I have to report? A Tour of FSRS.gov ARRA vs. FFATA Important Definitions Sub-recipients, Vendors, Grants, Contracts What is the Transparency Act? Next Steps & Resources Executive Compensation Q & A Questions and Answers Executive Compensation Exceptions to FFATA Reporting

3. What is the Purpose of the Federal Funding Accountability and Transparency Act (FFATA)? ► Requires information disclosure of entities receiving Federal contracts and sub-contracts, and Federal grants and sub-grants. ► Requires disclosure of executive compensation for certain entities. ► Creates a single, searchable website that provides the public with greater access to information of Federal spending: USASpending.gov.USASpending.gov ► This website displays data about grants, contracts, loans, awards, cooperative agreements, and other forms of Federal financial assistance. Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

4. What Needs To Be Reported? ► Prime contract awardees of contracts $25K or more must report associated contract subawards -Data collection will be phased in, with all required contract subawards reporting by March 2011 ► Prime grant awardees of grants $25K or more must report associated grant subawards ► Executive compensation information for awardees *NOTE: Classified information remains exempt from the prime and subaward reporting requirement Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

5. When Does Reporting Begin? Grant subaward (sub-grants only) reporting is required for all awards made on or after October 1, 2010 for all prime grant awards $25K or more Contract subaward (sub-contracts only) reporting requirement will be phased-in: Phase1 Reporting subawards of prime awards valued greater than $20M began July 2010 Phase 2 Reporting subawards of prime awards valued greater than $550K begins October 1, 2010 Phase3 Reporting subawards of prime awards valued at $25K or more begins March 1, 2011 Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

6. How Do I Report? ► Prime contract and grant awardees must register with Dun & Bradstreet to create and maintain a current unique business identifier (DUNS number) ► Prime contract and grant awardees must register with the Central Contractor Registry (CCR) ► Prime contract and grant awardees must report subaward information through the FFATA SubAward Reporting Systems (FSRS) ► Contract and Grant Subawardees must provide required information to their Prime Awardee, according to Prime Awardee’s established system and timeline *If required, prime contract and grant awardees must report executive compensation through CCR Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

7. How Long Do I Have to Report? All awardees must report by the end of the month following the month the sub- award or obligation was made. For example, if an award is made on October 10, 2010 the awardee would have until November 30, 2010 to report the award. All awards made during October will have until November 30, 2010 to report. Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

8. Who?Reports what?How? Prime contract or grant awardee Company information Executive compensation Contract subaward for awards $25K or more CCR CCR or FSRS* FSRS Grant sub- awardee Grant subaward information for awards $25K or more Through Prime grant awardee Prime awardees must report subaward information: * If executive compensation is not found in CCR it can be supplied through FSRS Summary Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

9. What Is FSRS.gov? FSRS is the FFATA Subaward Reporting System and can be found at www.fsrs.gov. Its functions include:www.fsrs.gov ► Collects subcontract and subgrant award information from prime awardees ► Currently supports CSV and XML “batch” inputs. ► Pre-populates prime award information, where possible. ► Leveraging Electronic Subcontract Reporting System (eSRS) so you do not need to re-register if you have an existing account in eSRS. ► New features include Excel batch templates, User Manual, webinar recordings, and online help desk. ► Also utilize www.fsrs.gov/resources.www.fsrs.gov/resources Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

10. Exceptions To FFATA Reporting: ► Grants, whether existing or new as of October 1, 2010, that are funded by the Recovery Act (ARRA). Such awards will continue to report those awards and related sub-awards through www.FederalReporting.gov. www.FederalReporting.gov ► 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 entity’s previous tax year. Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

11. How Is FFATA Reporting Different From ARRA? ► Less data fields ► Pre-populating capabilities ► More frequent reporting ► No duplicative reporting ► More flexible timing ► ARRA will end in a few years, but FFATA will continue… Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

12. Sub- awardee Prime Awardee GOPB (state agencies only) Federal Reporting.gov Recovery.gov Public Sub- awardee Prime Awardee FSRS.gov USA Spending.gov Public ARRA FFATA Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

13. A Sub-recipient is: “a[n]…entity that expends…awards received from a pass through entity to carry out a…program”. In other words, as found in the OMB Circular A-133 Compliance Supplement, “a sub-recipient relationship exists when funding from a pass-through entity is provided to perform a portion of the scope of work or objectives of the pass-through entity’s award agreement with the…awarding agency.” Are they a outside entity that is performing some of the work associated with the award? Vendors vs. Sub-recipients Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

14. A Vendor is: “a dealer, distributor, merchant or other seller providing goods or services that are required for the conduct of a…program….” In other words, as found in the OMB Circular A-133 Compliance Supplement, “a vendor, on the other hand, is generally a dealer, distributor or other seller that provides, for example, supplies, expendable materials, or data processing services in support of the project activities.” Are they merely providing a good or a service? Vendors vs. Sub-recipients Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

15. “The key difference between a sub-recipient and a vendor is that sub-recipient activities directly execute the mission, whereas vendors provide products or services that indirectly support the mission.” OMB Recovery Reporting FAQ #15 (http://www.whitehouse.gov/omb/recovery_faqs#21-7(http://www.whitehouse.gov/omb/recovery_faqs#21-7) *Note: For the purposes of the State of Utah ARRA reporting, as well as the Single Audit, a State agency is not considered a sub-recipient, but will be an “extension of the prime recipient.” Vendors vs. Sub-recipients Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

16. Grants vs. Contracts A Federal Grant is funding awarded: By formula or population Competitively or non-competitively To fund Federal programs/initiatives To supplement funding for Federal projects Without expectation to repay Includes Cooperative Agreements, etc. Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

17. Grants vs. Contracts A Federal Contract is funding awarded: For services rendered Pursuant to an agreement in writing which outlines a payment for a job For administering a program or duties on behalf of the Federal Government An agreement which contains Federal Acquisition Regulations (FAR)52.209.8 The definition of a “Contract” within Utah law is still vague, but if all fails, ask your Federal Agency! Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

18. This is required for both the Prime Awardee and First-tier Subawardee if: ► The entity received 80% or more of its annual gross revenues in Federal awards in the preceding fiscal year ; and ► The entity received $25,000,000 or more in annual gross revenues from Federal awards; and ► The public does not have access to this information about the compensation of the senior executives of the entity.* * (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) When is Executive Compensation data required? Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

19. What Should I Do Now? ► Ensure you have an active registration in CCR, for the DUNS number under which the grant was made, and provide all required information. ► Register in FSRS. ► Identify data elements needed from Sub-awards. ► Ensure your subawarding process gathers the appropriate information and certifications from subawardees to meet the requirements of FFATA. ► Identify all awards subject to reporting requirements. ► Create a process to review data prior to submission. ► Develop an internal control framework that addresses the FFATA transparency objectives. Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

20. USASpending.gov http://www.usaspending.gov/news Webinars, Trainings, FAQ’s OMB www.whitehouse.gov/omb/open OMB website for Federal Spending Transparency FSRS https://www.fsrs.gov Federal Reporting System, Registration Central Contractor Registry www.bpn.gov/ccr Registration Required Your Awarding Federal Agency Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Q & A Executive Compensation

21. ? Reporting FSRS.gov ARRA vs. FFATA Important Definitions FFATA Background Next Steps Exceptions Executive Compensation Q & A