U.S. Department of Justice, Office of Justice Programs

Award Condition: Reporting Subawards and Executive Compensation (Updated as of September 2016)

The following award condition is incorporated by reference into certain OJP awards made on or after October 1, 2010. (To determine whether this condition applies to a particular OJP award, refer to the conditions that accompany the award document.)

Award Term and Condition:

Reporting Subawards ("Subgrants") and Executive Compensation

Section A. Reporting of first-tier subawards

  1. Applicability. Unless the recipient is exempt as provided in section D of this award condition, the recipient must report each action that obligates $25,000 or more in federal funds for a subaward ("subgrant") to an entity. (See the definitions in section E of this award condition.)

  2. Where and when to report.
    1. The recipient must report each obligating action described in section A.1 of this award condition to https://www.fsrs.gov.

    2. For subaward ("subgrant") 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.)
  3. What to report. The recipients must report the information about each obligating action that the submission instructions posted at https://www.fsrs.gov specify.

Section B. Reporting Total Compensation of Recipient Executives.

  1. Applicability and what to report. The recipient must report total compensation for each of its five most highly compensated executives for the recipient's preceding completed fiscal year, if--
    1. the total federal funding authorized to date under this award is $25,000 or more;

    2. in its preceding fiscal year, the recipient received--

      (1) 80 percent or more of its annual gross revenues from federal procurement contracts (and subcontracts) and from grants, cooperative agreements, and other assistance defined as "Federal financial assistance subject to the Transparency Act" at 2 C.F.R. 170.320 (and subawards); and

      (2) $25,000,000 or more in annual gross revenues from federal procurement contracts (and subcontracts) and from grants, cooperative agreements, and other assistance defined as "Federal financial assistance subject to the Transparency Act" at 2 C.F.R. 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 https://www.sec.gov/answers/execomp.htm.)
  2. Where and when to report. The recipient must report executive total compensation described in section B.1 of this award condition:
    1. As part of the recipient's registration profile at https://www.sam.gov.

    2. By the end of the month following the month in which this award is made, and annually thereafter.

Section C. Reporting of Total Compensation of Subrecipient ("Subgrantee") Executives.

  1. Applicability and what to report. Unless the recipient is exempt as provided in section D of this award condition, for each first-tier subrecipient (first-tier "subgrantee") under this award, the recipient must 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 from grants, cooperative agreements, and other assistance defined as "Federal financial assistance subject to the Transparency Act" at 2 C.F.R. 170.320 (and subawards); and

      (2) $25,000,000 or more in annual gross revenues from federal procurement contracts (and subcontracts), and from grants, cooperative agreements, and other assistance defined as "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 subrecipient 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.)
  2. Where and when to report. The recipient must report subrecipient ("subgrantee") executive total compensation described in section C.1 of this award condition (to https://www.fsrs.gov), by the end of the month following the month during which the recipient makes the subaward ("subgrant"). 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), the recipient must report any required compensation information of the subrecipient by November 30 of that year.

Section D. Exemptions

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

  1. subawards ("subgrants"), and

  2. the total compensation of the five most highly compensated executives of any subrecipient ("subgrantee").

Section E. Definitions. For purposes of this award condition:

  1. "Entity" means all of the following, as defined in 2 C.F.R. 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 (including a nonprofit institution of higher education);

    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" ("subgrant"):
    1. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which the recipient received this award and that the recipient awards to an eligible subrecipient ("subgrantee").

    2. The term does not include an agreement that, for purposes of federal grants administrative requirements, is a procurement by the recipient of property and services needed to carry out the project or program.

    3. A subaward ("subgrant") may be provided through any legal agreement, including an agreement that the recipient (or a subrecipient), for internal or other non-federal purposes, considers a contract.

      For further explanation of the distinctions -- for purposes of federal grants administrative requirements -- between subawards ("subgrants") and procurement contracts under federal grants and cooperative agreements, see the provisions of 2 C.F.R. Part 200, including 2 C.F.R. 200.330, and associated additional guidance provided by OJP.

  4. "Subrecipient" ("subgrantee") means an entity that receives a subaward ("subgrant") from the recipient under this award. A subrecipient is accountable to the recipient for the use of the federal funds provided by the subaward.

  5. "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 C.F.R. 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.
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