Public Law 106-107 requires the Office of Management and Budget (OMB) to direct the process of streamlining and simplifying Federal financial reporting procedures for non-Federal entities.  One of the results of this streamlining initiative is the development of standard government-wide forms, including Form SF-425.

Until now, Federal grant recipients have been required to use forms SF-269, SF269A, SF272, and SF272A (federal grant financial reporting forms).  Starting September 30, 2009 all non-Federal recipients will prepare and submit forms SF-425 or SF-425A, according to the OMB.  In other words, each federal agency will require its grant recipients to use only the SF-425 for all financial reports after the date it makes the transition.

The SF-425, also called FFR (Federal Financial Report), is the consolidation of the two most common financial reports, the Financial Status Report (FSR or SF–269/SF–269A) and the Federal Cash Transaction Report (FCTR or SF– 272/SF–272A), into a single form.

What’s new about FFR?

1. Report Type
   • You will specify whether the financial report is quarterly, semi-annual, annual, or the final financial report for the grant.
   • This replaces the Final Report indicator on the FSR.
2. Total Recipient Share Required: is the cumulative recipient share of the grant’s funds based on the amounts entered in the approved budgets.
3. Remaining Recipient Share to be provided: this amount is the difference between Total Recipient Share Required and Recipient Share of Expenditures. If Recipient Share of Expenditures exceeds Total Recipient Share Required, the remaining recipient share will be zero.
4. Program Income
   • You will only report data in this section if you have earned program income in excess of what was reported in the Recipient Share of Expenditures.
   • Consult your grant provisions or terms and conditions to determine whether to use the additive or deductive method for excess program income.
   • You may leave this section blank if you do not have any excess program income to report.

MT Pinero specializes in Not-for-Profit accounting including federal grants management.  Please contact us for more details.

Madina Traore 

Bookkeeper