Multifamily Housing Program Financial Management Toolkit

7c. Other Reporting Requirements

FFATA Sub-award Reporting

Applicants selected for funding will be required to report first tier sub-awards and executive compensation information, where their initial award is $25,000 or greater or the cumulative award is $25,000 or more, as required by the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109-282). The prime grant awardees will have until the end of the month plus one additional month after an award or sub-grant is obligated to fulfill the reporting requirement. The Federal Funding Accountability and Transparency Act (FFATA) of 2006 calls for the establishment of a publicly available web site to disclose the use of Federal finance assistance. FFATA also requires the reporting of the Total Compensation and Names of the top five executives if:

  • More than 80 percent of annual gross revenues are from the Federal government, and those revenues are greater than $25M annually; and
  • Compensation information is not already available through reporting to the SEC.

OMB has published Interim Final Guidance to agencies regarding the FFATA sub-recipient reporting requirements in the Federal Register on September 14, 2010 (75FR55663.)

Compliance with Section 872

Compliance with Section 872 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Pub. L. 110-417), commonly referred to as ‘Section 872,’ requires the establishment of a government-wide data system to contain information related to the integrity and performance of entities awarded federal financial assistance and making use of the information by federal officials in making awards. It is anticipated that the federal data system will be known as the Federal Awardee Performance and Integrity Information System (FAPIIS). Only federal officials and the entity will be able to view the information in the FAPIIS system.

Further, each recipient of federal funds with a cumulative value greater than $10 million and their direct (i.e., first-tier) sub-recipients would be required to report to the FAPIIS system. The data collection requirements include information about certain civil judgments, criminal convictions, and outcomes of administrative proceedings that reached final disposition within the most recent 5-year period and were connected with the award or performance of a federal or state award. Recipients and first-tier sub-recipients must report information at least semi-annually to maintain the currency of the information. Section 872 also requires that an entity be allowed to submit comments to the data system about any information that system contains about the entity. Use of the FAPIIS system requires a DUNS number and current valid registration in SAM for HUD awardees and first-tier sub recipients.

Prior to making a funding decision, the federal official authorized to make the award is required to determine whether the entity is qualified to receive an award, taking into consideration any information about the entity that is in the data system. OMB is in the process of issuing regulations regarding federal agency implementation of Section 872 requirements. HUD’s terms and conditions to its FY2015 awards contain requirements related to meeting Section FFATA and Section 872 requirements.