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SF-425 Federal Financial Report: Line-by-Line Guide, Due Dates and Pulling the Numbers From Your Ledger
Last updated: October 15, 2026 · Independent guide · We do not sell rankings or coverage.
The SF-425 Federal Financial Report is the standard form federal agencies use to collect the financial status of a grant or cooperative agreement: federal cash received and spent, the federal share of expenditures, unliquidated obligations, your cost share, program income and indirect costs. Under 2 CFR 200.328, an agency collects it at least annually and generally no more than quarterly, and the final SF-425 is due within 120 calendar days after the period of performance ends. Lines 10 and 11 are cumulative from the start of the award, so the report is only as good as your grant coding. We checked the rules below on October 15, 2026, in the eCFR, which showed its text as up to date as of October 13, 2026, and in the Cornell LII copy where the eCFR did not load.
The rule in brief
- Who files: recipients of federal grants and cooperative agreements. Subrecipients report to their pass-through entity.
- The form: SF-425, OMB No. 4040-0014, submitted for reinstatement “without change” in 2025 (Federal Register, May 15, 2025). The current form shows an expiration date of June 30, 2028 (USDA Rural Development form instructions).
- Frequency: at least annually and generally no more than quarterly (2 CFR 200.328(b)).
- Interim due dates: 30 calendar days after a quarterly or semiannual period, 90 calendar days after an annual period (2 CFR 200.328(c)).
- Final report: 120 calendar days after the period of performance ends for recipients, and 90 days for subrecipients reporting to a pass-through entity (2 CFR 200.344(b)).
- Official source: 2 CFR Part 200, as revised effective October 1, 2024.
What the rule requires
Section 200.328(a) limits federal agencies to OMB-approved government-wide data elements on recipient financial reports, which in practice means the SF-425. Agencies and pass-through entities may collect reports more often than quarterly only as a specific condition under 200.208 (2 CFR 200.328).
Interim reports cover periods ending March 31, June 30, September 30 or December 31, and a final report uses the end date of the period of performance (FFR Instructions, revised June 28, 2010). If an agency wants accrual data and you keep cash-basis books, you may develop accrual figures from your existing records rather than build an accrual system (2 CFR 200.302).
Agencies collect the form in their own systems. HHS uses the Payment Management System, and HRSA says lines 10a and 10b will be pre-populated there (HRSA FFR FAQs, no date shown).
Line by line: where each number comes from in your ledger
Lines 1 to 9 are identifiers that must match your award document. Lines 10 and 11 are “cumulative amounts from date of the inception of the award” through the line 9 date (FFR Instructions). The right-hand column is our suggested ledger source when every transaction carries a grant code.
| Line | What the instructions ask for | Where to pull it from |
|---|---|---|
| 10a Cash receipts | Federal cash actually received, inception to date | Drawdown deposits posted to the grant, tied to the payment system history |
| 10b Cash disbursements | Federal funds paid out, including indirect expenses and payments to subrecipients and contractors | Paid federal-share expense lines, indirect allocations and subaward payments |
| 10c Cash on hand | 10a minus 10b | Calculated; should be near zero on a reimbursement award |
| 10d Total federal funds authorized | Federal funds obligated to date | Latest notice of award or amendment, not the budget module |
| 10e Federal share of expenditures | Cash basis: disbursements, indirect charged and subrecipient advances. Accrual basis adds net change in amounts owed | Federal-source grant expenses, including accrued payables and payroll |
| 10f Unliquidated obligations | Cash basis: obligations incurred but not paid. Accrual basis: obligations incurred with no expenditure recorded | Open purchase orders, encumbrances and unpaid subaward commitments |
| 10g and 10h | 10e plus 10f; then 10d minus 10g | Calculated |
| 10i to 10k Recipient share | Required match, match spent (including allowable third-party in-kind), remaining match | Non-federal-source grant expenses plus recorded in-kind |
| 10l to 10o Program income | Income earned, used under the deduction or addition alternative, and unexpended | A program income revenue account coded to the grant |
| 11a to 11g Indirect expense | Rate type, rate, period, base, amount charged and federal share | The indirect allocation entries and the base they were calculated on |
Cash on hand. Section 200.305(b) requires you to minimize the time between receiving and disbursing federal cash. NTIA says the agency may require an explanation on line 12 if you hold more than three business days of cash (NTIA SF-425 Primer, April 2026). Interest above $500 a year on federal advances goes back to the HHS Payment Management System (2 CFR 200.305).
Program income. If the award is silent, the deduction alternative applies, except that institutions of higher education and nonprofit research institutions default to the addition alternative (2 CFR 200.307(b)).
Indirect costs. Line 11a asks whether the rate is provisional, predetermined, final or fixed, and line 11e should equal the rate times the base (COPS Office Helpful Hints Guide, revised September 2023). Your rate comes from your negotiated indirect cost rate agreement (NICRA) or, if you have none, the de minimis indirect cost rate, which is now up to 15% of modified total direct costs (2 CFR 200.414(f)).
Illustration: a cumulative accrual-basis SF-425
A nonprofit holds a $500,000 federal award with a $100,000 required match and a provisional rate of 22% of modified total direct costs (MTDC). All figures are illustrative.
| Line | Ledger figure (inception to June 30, 2026) | Amount |
|---|---|---|
| 10a | Drawdowns deposited | $212,000 |
| 10b | Federal share paid, including indirect | $205,500 |
| 10c | Cash on hand | $6,500 |
| 10e | Direct $195,000 plus indirect $33,000, including $22,500 accrued but unpaid | $228,000 |
| 10f | Open purchase order, services not yet received | $18,000 |
| 10g / 10h | $228,000 + $18,000; $500,000 minus $246,000 | $246,000 / $254,000 |
| 10i / 10j / 10k | Required match; match spent; remaining | $100,000 / $41,000 / $59,000 |
| 10l / 10n / 10o | Workshop fees earned; spent under the addition alternative; unexpended | $4,000 / $3,200 / $800 |
| 11b / 11d / 11e | Rate; MTDC base (direct costs less $30,000 equipment and $15,000 participant support); amount charged | 22% / $150,000 / $33,000 |
Equipment and participant support are excluded from MTDC under 2 CFR 200.1, so a base pulled from total direct costs would overstate line 11d by $45,000.
Who is exempt or reports differently
A subrecipient does not file an SF-425 with the federal agency. It reports to its pass-through entity, on that entity’s schedule, and its final report is due within 90 days of the subaward end date or an earlier agreed date (2 CFR 200.344(b)).
Agencies also switch off lines that do not apply to them. The COPS Office tells recipients to leave lines 10a to 10c blank and accepts no SF-425A multi-award attachment (COPS Office, revised September 2023). One DOE program lets recipients leave the program income and indirect lines blank (DOE Appendix 9, December 2025). Your agency’s instructions take priority.
Deadlines and penalties
| Report | Period end | Due |
|---|---|---|
| Quarterly or semiannual | March 31, June 30, September 30, December 31 | 30 calendar days later (for example, July 30 for June 30) |
| Annual | As set in the award | 90 calendar days later |
| Final (recipient) | End of period of performance | 120 calendar days later |
| Final (subrecipient to pass-through) | End of subaward | 90 calendar days later, or earlier if agreed |
You must also liquidate all obligations within the same 120 days (2 CFR 200.344(c)), and the FFR Instructions say line 10f should be zero on the final report unless the agency directs otherwise (FFR Instructions).
Section 200.344(b) also covers indirect rates. If your final indirect cost rate is not set when the final report is due, you still file it, then submit a revised final report once the rates are finalized (2 CFR 200.344(b)).
If you fail to submit final reports, the agency must report the material failure in SAM.gov through CPARS and may use the remedies in 200.339 (2 CFR 200.344(i)). At the COPS Office, a missed due date blocks drawdowns, and after 120 days past the award end any remaining balance is forfeited (COPS Office).
Common mistakes
- Reporting the period, not the total. The COPS guide builds 10e and 10j cumulatively, adding the current period to the prior report, so a figure for the current quarter alone understates both lines.
- Counting the same dollar twice. Amounts in 10e must not appear again in 10f, and future commitments with no incurred obligation do not belong in 10f (NTIA, April 2026).
- Overstating match. Line 10i is the required match only, not every non-federal dollar you spent.
- A final report that does not reconcile to drawdowns. HRSA lists final reports rejected for not reconciling with Payment Management System draws among its FAQ topics.
- Indirect cost built on the wrong base. Check 11e against 11b times 11d and confirm exclusions from MTDC.
Records you must keep
Keep award records for three years from the date you submit the final financial report. For awards renewed quarterly or annually, the clock runs from each quarterly or annual report. Records involved in litigation, claims or audit findings started before the three years end must be kept until resolved (2 CFR 200.334).
For each report, save the ledger extract behind every line, the drawdown history, the open purchase order list for 10f, match detail and the indirect calculation. Single audit testers check that SF-425 expenditures tie to your schedule of expenditures of federal awards.
What to set up in your systems
Section 200.302(b) requires a financial management system that identifies each award by Assistance Listing number, award number, year and federal agency or pass-through entity (2 CFR 200.302). In fund accounting terms, that means:
- One grant value per award, storing award number, Assistance Listing, period of performance, authorized amount and match requirement.
- A funding source dimension (federal, match, other) on every expense line, so 10e and 10j come from the same transactions.
- Purchase orders and encumbrances coded to the grant, so open commitments produce 10f.
- A separate program income account coded to the grant, with the alternative noted on the award record.
- An indirect allocation that stores the rate, rate type, effective dates and the MTDC base it used.
- A saved inception-to-date report by award, laid out in SF-425 line order.
Sage Intacct tracks grants with the project dimension or its Projects application. Its grant tracking help page does not mention an SF-425 report (Sage Intacct Help, last modified October 8, 2026).
Blackbaud Financial Edge NXT stores grants as records with multi-period budgets and indirect allocations. Its product page does not mention the SF-425 or the Uniform Guidance (Blackbaud, last modified May 14, 2026).
Oracle PeopleSoft Grants generates SF-425 and SF-425A output as XML for import into the government PDF form, drawing on award, Project Costing and Billing data (Oracle, September 20, 2026). For wider comparisons, see our grant management software guide.
How we researched this
We read 2 CFR 200.1, 200.302, 200.305, 200.307, 200.328, 200.334, 200.344 and 200.414 on October 15, 2026, using the eCFR and, where the eCFR timed out, the Cornell LII copy of the same text. We also read the standard FFR instructions, current field instructions and agency guides from DOJ COPS, NTIA, DOE and HRSA. The top-ranking pages for this term are agency instruction pages; we also read vendor documentation for each product named. No vendor paid for or reviewed this article.
Related guides
- Single Audit Requirements: $1M Threshold and Major Programs
- Grant Budget Template: Categories, Narrative and 2 CFR 200
Frequently asked questions
When is the SF-425 due?
Quarterly and semiannual reports are due 30 calendar days after the period ends, annual reports 90 days after, and the final report 120 days after the period of performance ends. Your award sets the interim schedule.
Are SF-425 amounts cumulative or for the period only?
Lines 10 and 11 are cumulative from the start of the award through the report period end date. A figure for the current quarter alone understates them.
What are unliquidated obligations on the SF-425?
They are obligations incurred but not yet paid (cash basis) or not yet recorded as expenditures (accrual basis), such as an open purchase order. They should be zero on the final report.
What happens if my final indirect cost rate is not set at closeout?
You still file the final SF-425 within 120 days, then file a revised final report once the rate is finalized.
Sources
- eCFR, 2 CFR 200.1, 200.302, 200.305, 200.307, 200.328, 200.334, 200.344 and 200.414, up to date as of October 13, 2026, checked October 15, 2026 (200.302, 200.307, 200.334 and 200.414 read in the Cornell LII copy; the eCFR shows no amendment to them since October 1, 2024). ecfr.gov
- Federal Financial Report Instructions, revised June 28, 2010. nist.gov
- USDA Rural Development, Federal Financial Report form instructions, OMB No. 4040-0014, expiration June 30, 2028 (no publication date shown). rd.usda.gov
- HHS, Agency Information Collection Request, Federal Financial Report (4040-0014), Federal Register document 2025-08675, May 15, 2025. federalregister.gov
- DOJ COPS Office, Helpful Hints Guide for Completing the SF-425, revised September 2023. cops.usdoj.gov
- NTIA, SF-425 Primer, April 2026. ntia.gov
- U.S. Department of Energy, Appendix 9, FFR SF-425 Instructions, December 2025. energy.gov
- HRSA, SF-425 Federal Financial Report Integration into the Payment Management System FAQs, no date shown. hrsa.gov
- Sage Intacct Help, Grant tracking and billing, last modified October 8, 2026. intacct.com
- Blackbaud, Financial Edge NXT grant and program accounting, last modified May 14, 2026. blackbaud.com
- Oracle, Federal Financial Reporting in PeopleSoft Grants, September 20, 2026. oracle.com
Sherman Hsieh
Independent analysis of enterprise software — ERP, CRM and more
