BLOCK GRANT FISCAL REPORTING REQUIREMENTS - 8760

(Revised: 03/2026)

 

The federal government awards certain block grant funding to the state for various social service programs. The federal block grants include, but are not limited to, the following:

• Low-income home energy assistance
• Preventive health and health services
• Maternal and child health services
• Substance abuse prevention and treatment
• Community mental health services
• Social services, empowerment zones, and enterprise communities
• Community services

The state assumes certain fiscal administrative responsibilities for the block grants. The federal agencies that administer block grants require recipients to comply with specific fiscal requirements:

• Complete the Federal Financial Report form, SF-425.
• Submit the SF-425 according to the due date set by the administering federal cognizant.
  • Failure to submit required reports in a timely manner may result in the federal cognizant taking appropriate action, including canceling or withdrawing the grant.

• Maintain detailed accounting records that form the basis for the SF-425.
• If required, provide additional information/reports to the administering federal cognizant to supplement the information contained in the SF-425.
• Retain the grant reports based on the department’s record retention schedule for fiscal management, audits, and control purposes.

Grant subrecipients requirements:

• Submit the grant reports by the due date set by the grant recipient.
• Maintain detailed accounting records that form the basis for the grant reports.
• Retain and have the accounting records available for audit.

 

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