AFI Guidance for AFI Grantees on the New Financial Reporting Form
Guide to the Financial Reports (SF 425)
Guide to the Financial Reports (SF 425)
All AFI grantees are required to provide updates on their financial progress by completing reports on the status of all Federal and non-Federal dollars in their Project Reserve Fund.
Effective immediately, all AFI grantees must use the new Federal Financial Report form (SF 425) form instead of the SF 269 form. SF 269s will no longer be accepted for financial reports.
All other reporting requirements will remain the same:
•Reports must still be submitted in hardcopy
•Reporting deadlines (see below) will remain the same
•Grantees are not required to provide data on any supportive funds that are not deposited into the Reserve Fund.
As with the narrative reports, financial report deadlines are based on the dates that grantees received their awards. Review the deadlines specific to your award date, download the report, and complete it according to the instructions below. Contact the appropriate Grants Management Specialist or the AFI Resource Center with any questions.
AFI network projects should be sure to include subgrantee activity in their reports.
Instructions for completing the Federal Financial Report (SF-425) are the same for all AFI grantees, regardless of their award numbers or report due dates. While there are standard instructions for the SF-425, AFI grantees should disregard the standard instructions and use the instructions presented below, rather than the standard version. If you have questions, please contact your grants management specialist or the AFI Resource Center (email@example.com; 1-866-778-6037).
Make sure to use the instructions below.
•Download the Federal Financial Report (SF 425) and make copies as worksheets.
•Complete the form.
•Submit the form to the Office of Grants Management (OGM) and Office of Community Services (OCS). Send OGM the original (with original signatures) and one copy by mail. Send OCS a copy by mail, fax, or email. Keep another copy for your records.
Instructions for Completing the SF-425
All AFI grantees, regardless of project award date, must use the Federal Financial Report (SF-425) for expenditure reports submitted after February 1, 2011, even if the report was due earlier. If a grantee submits an SF-269 form, the Administration for Children and Families (ACF) Office of Grants Management will return it and require the recipient to complete the SF-425.
AFI grantees will continue to submit an original, signed hard copy and an additional copy of each Federal Financial Report (SF-425) to their assigned Grants Management Specialist, and a copy of each report to the Office of Community Services, as email attachments, hard copies, or faxes. There will be separate SF-425 reports for each AFI award. Each SF-425 is submitted semiannually, 30 days after each six-month reporting period. Due dates vary according to the actual project award date. See the AFI Resource Center website for report due dates for each award: http://www.idaresources.org/page?pageid=a047000000Ar7qH.
Step 1. Download the Financial Status Report (SF 425), in portable document format (PDF) from the AFI Resource Center Web site http://www.whitehouse.gov/sites/default/files/omb/assets/grants_forms... or http://www.whitehouse.gov/omb/grants_forms and make copies as worksheets.
Step 2. Complete it! (These instructions supersede instructions on the form itself. Please follow these instructions carefully.)
•Item 1: Enter HHS/ACF/OCS.
•Item 2: Enter the AFI grant number. Remember, a grantee organization with multiple AFI awards must submit separate reports for each grant award. The grant number is in the format: 90EIXXXX.
•Item 3: Enter the grantee organization name and complete address. This information must be as it appears in the approved grant application and in Box 11 of the Notice of Award (NoA) document. Please notify the Office of Grants Management and OCS in writing if this information changes over the life of the project.
•Item 4a: Enter the grantee organization’s DUNS number (Data Universal Numbering System) or its Central Contract Registry extended DUNS number found in Box 25 of the notice of award document.
•Item 4b: Enter the grantee’s Employer Identification number (EIN) as it appears in Box 22 of the notice of award document. Include the prefix and suffix as part of the EIN.
•Item 5: Enter any identifying account number that the grantee has assigned to the award reported on this form.
•Item 6: Check “semiannual” unless this is the final report for the project. The final report is submitted 90 days after the project end date.
•Item 7: Check the “Cash ” box.
•Item 8: Enter the beginning and end dates of the five-year project period for the grant. This information appears in Box 9 on the notice of award document. If ACF has approved a 12-month no-cost extension, the new end date is shown in Box 9 of the revised notice of award document provided with the notification that the no-cost extension was approved.
•Item 9: Enter the reporting period end date. The report will cover periods of six months during each implementation year of the grant (semiannual reports are required). Please note, even though you will be reporting cumulative information, the end date in this Item should be for only the 6-month period on which you are reporting. Refer to the tables for reporting periods and due dates on the AFI Resource Center website: http://www.idaresources.org/page?pageid=a047000000Ar7qH. NOTE: You should use these dates for your reports. Do not base your reports on the Federal fiscal year quarters given in the standard instructions for the Federal Financial Report (SF-425). The final Federal Financial Report (SF-425) will have an end date that is 90 days after the project period end date.
•Item 10: This section of the report is divided into four sections, summarizing the figures for Federal cash received and expended; Federal cash remaining in the Project Reserve Fund; the grantee’s share (nonfederal dollars in the Project Reserve Fund); and program income. The report captures cumulative financial transactions through the end date entered in Item 9.
◦Cash Receipts: This figure will equal the cumulative amount of Federal funds the grantee has drawn down from the HHS Payment Management System, regardless of whether they have been expended or not, as of the reporting end date.
◦Cash Disbursements: This is the cumulative amount of Federal award funds (AFI grant funds) that the grantee has spent so far from the Project Reserve Fund. This includes disbursements to match participant savings for asset purchase and disbursements for administrative costs. Exclude any expenditure of interest earned on the Project Reserve Fund.
◦Cash on Hand: This figure is amount of Federal funds remaining in the Project Reserve Fund. It should equal 10a minus 10b. Remember that AFI grantees may hold funds drawn down until the project closes or until the funds are expended for allowable program activities. Add this as a note in Item 12, the Remarks section, of the report.
Federal Expenditures and Unobligated Balances
◦Total Federal Funds Authorized: This is the amount of the Federal AFI grant award as indicated in Box 20 on the Notice of Award (NoA) document. This original award amount will never change from report to report. NOTE: This definition varies from the standard instructions on the form.
◦Federal Share of Expenditures: This is the cumulative amount of Federal award funds (AFI grant funds) that the grantee has spent from the Project Reserve Fund as of the reporting end date. It will be the same figure as in Item 10b. You need not distinguish here between expenditures to match participant IDAs and expenditures used to support the project, but you should track these uses internally to insure compliance with AFI guidelines for total expenditures by the end of your project. Exclude any expenditure of interest earned on the Project Reserve Fund from item10e.
◦Federal Share of Unliquidated Obligations: This is the figure for the Federal funds drawn down and remaining in the Project Reserve Fund as of the reporting period end date. If this is your final Federal Financial Assistance (SF-425) report for the grant, this figure will be “0” because you will have liquidated all obligations in the close out process.
◦Total Federal Share: This figure is the sum of all Federal funds drawn down and spent, plus Federal funds remaining in the Project Reserve fund at the reporting period end date. It should be the sum of Item10e and Item10f.
◦Unobligated Balance of Federal Funds: This is the amount of your Federal AFI award that you have not yet drawn down. It should be the difference between Item 10d, your AFI award amount, and Item 10g, the amount drawn down and spent plus what remains in the Project Reserve Fund.
◦Total Recipient Share Required: This figure is the cumulative amount of nonfederal cash the grantee has deposited into the Project Reserve Fund. It should be at least equal to Item 10a because AFI grantees may draw down against their AFI award only an amount equal to the nonfederal cash previously deposited into the Project Reserve Fund.
◦Recipient Share of Expenditures: This figure is the cumulative amount of nonfederal funds disbursed from the Project Reserve Fund. It should at least equal Item 10e, as expenditures from the Reserve Fund should be comprised of equal amounts of Federal and nonfederal funds. You need not distinguish here between expenditures to participant IDAs and expenditure used to support the project, but you should track these uses internally to insure compliance with AFI guidelines for total expenditures by the end of your project. Exclude any expenditure of interest earned on the Project Reserve Fund.
◦Remaining Recipient Share to be provided: This figure is the remaining amount of nonfederal cash the grantee will deposit into the Project Reserve Fund in order to draw down the entire amount of the Federal AFI award before the project end date. It will be the difference between Item 10i, the cumulative amount of nonfederal cash already deposited into the Reserve Fund by the reporting period end date, and the total nonfederal cash contribution required, given in box 17 of your Notice of Award (NoA) document.
This is the section of the report where AFI grantees report on interest earned on the Project Reserve Fund. The Reserve Fund does not have to be interest bearing. If the Reserve Fund is not interest bearing, then Item 10l through Item 10o will be zero, “0”.
◦Total Federal Program Income Earned: This is the cumulative amount of interest earned on any funds in the Project Reserve Fund: the sum of disbursed and undisbursed interest.
◦Program Income Expended in Accordance with the Deduction Alternative: This will be zero, “0”. Interest earned on money held in the Project Reserve Fund does not reduce the Federal share of total project costs of an AFI grant.
◦Program Income Expended in Accordance with the Addition Alternative: This is the cumulative amount of interest earned in the Project Reserve Fund that has been disbursed to participants or used for project operations per AFI guidelines. You need not distinguish here between interest distributed to participant IDAs and interest used to support the project, but you should track these uses internally to insure compliance with AFI guidelines for total expenditures by the end of your project.
◦Unexpended program Income: This is the cumulative amount of interest earned on the Project Reserve Fund that has not yet been disbursed to participants or used for project operations per AFI guidelines. It should equal Item 10l minus Item 10n.
•Item11: Indirect Expense:
AFI grantees do not complete Items 11a through 11g because they do not receive indirect costs for AFI projects.
Note for Final SF-425: If you did not disburse all of the Federal AFI grant funds that you drew down, you must return those funds. The amount to return is the difference between Item 10a and Item 10e. That is the difference between the amount of Federal funds you drew down and the Federal portion of what you spent. If you have funds to return, please note the amount in the Remarks section, Item 12 on the SF-425. Attach a copy of the remittance check, and please give the amount and check number also in the remarks section. The check itself, made out to HHS, goes to a different address. For instructions on returning funds go to: http://www.idaresources.org/page?pageid=a047000000Ar7rP. .
Remarks, Certification, and Agency Use Only
•Item 12: Enter any explanations or additional information that may explain the figures given in Item 10. For example, if you have nonfederal deposits greater than the Federal amount drawn down, it may be helpful to explain this.
•Item 13a: Type or print the name and title of your authorized official. This will the individual named in Box 11 of your award document. If the authorized official changes, you must notify the Office of Grants Management of the change in writing. Please copy any such change to the Office of Community Services.
•Item 13b: Signature of the grantee’s authorized official.
•Item 13c: Enter the telephone number (area code and extension) of the authorized official.
•Item 13d: E-mail address: Enter the email address of the authorized official.
•Item 13e: Enter the date the Federal Financial Report (SF-425) is submitted to the Office of Grants Management and copied to the Office of Community Services: use a month, day, year format.
•Item 14: Do not complete. This is for Federal agency use only.
Step 3. Submit the form to the Office of Grants Management and Office of Community Services. Keep a copy for your records. Send the original, with original signatures, and one copy to the Office of Grants Management. Send, fax, or email a copy to the Office of Community Services.
Office of Grants Management
Attention: [Name of Assigned Grants Management Specialist]
Division of Discretionary Grants
Office of Grants Management
Administration for Children and Families
370 L'Enfant Promenade SW, 6th Floor
Washington, DC 20447
Office of Community Services
Assets for Independence Program
Office of Community Services
370 L'Enfant Promenade SW, 5th Floor
Washington, DC 20447
Additional Notes on the SF 425
Project Reserve Fund Interest
Keep in mind that grantees are not required to structure their Project Reserve Fund as an interest-bearing account. However, funds earned as interest can benefit both the grantee and participants and may be worth the administrative effort.
Grantees that choose to earn interest on their Project Reserve Fund should think carefully about how they will track interest. For reporting purposes on the Federal Financial Report (SF-425), ACF requires only that grantees differentiate between disbursed and unspent interest. However, grantees will need to keep a more detailed record of interest for their own accounting purposes.
Interest earned on Project Reserve Funds may never substitute for grantee nonfederal cash contribution or for participant IDA savings.
For those AFI Projects that are structured as networks with subgrantees or partner sites, keep in mind that any subgrantee Project Reserve Fund activity must also be incorporated in the total figures on the SF-425 financial report submitted by the lead organization. This information should not be excluded or reported separately. It is good accounting practice for the grantee to track all the subgrantee financials separately for their own internal accounting purposes, even though OGM and OCS ask for only the aggregate information.