UPDATE – Implementation of Requirement to Submit the Federal Financial Report (FFR) in the Payment Management System
Notice Number:

Key Dates

Release Date:

February 4, 2021

Related Announcements

NOT-OD-21-128 - Updated Process for Submission of Federal Financial Reports for Closed Payment Management System Subaccounts

NOT-OD-21-046 - Reminder: Mandatory Submission of the Federal Financial Report (FFR) in the Payment Management System Beginning January 1, 2021

NOT-OD-20-127 - Upcoming Mandatory Submission of the Federal Financial Report (FFR) in the Payment Management System Beginning January 1, 2021

NOT-OD-21-138 - NIH Final Federal Financial Reports (FFRs) will be converted to Interim Annual Reports in the Payment Management System

Issued by



The purpose of this Notice is to acknowledge challenges that recipients have experienced with submitting the SF-425 Federal Financial Report (FFR) via a single-entry point in the HHS Payment Management System (PMS). The requirement went into effect on January 1, 2021.

Recipients have reported a significant increase in errors in submitting reports via a single-entry point. The errors are mainly caused because the system does not allow recipients to submit reports that do not reconcile expenditure versus quarterly cash transaction data. When the data does not reconcile, the HHS PMS will not accept the reports. These challenges have begun to create delays in reporting and certifying expenditure FFRs as required by the terms and conditions of the awards. NIH and its eRA partners recognize this has impacted recipients’ ability to submit timely final FFRs in accordance with established deadlines outlined in the terms and conditions of award.

Given the significant impact, agencies will provide leniency, as appropriate, where these challenges prevent recipients from submitting timely FFRs. Recipients are required to notify their Grants Management Official of these unavoidable delays and retain all documentation related to this flexibility in the event of an audit finding. Any delays other than the PMS reconciliation issues identified in this notice are not covered under this flexibility.

NIH and its partners are working closely with HHS PMS to address this matter as quickly as possible, and will continue to provide updates, as available.


Please direct all inquiries to:


Office of Policy for Extramural Research Administration

Systems Policy Branch



Division of Grants Management



Food and Drug Administration (FDA)
Office of Acquisitions and Grants Services (OAGS)
Grants Management Branch

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