Federal Financial Report (FFR) and Program Income Highlights

1

Overview

In Fiscal Year 2009, the Corporation will implement two changes with respect to RSVP, Foster 

Grandparent and Senior Companion program grants. The purpose of this document is to 

describe the upcoming changes and to provide additional information. 

New in Fiscal Year 2009: 

I. A new government-wide Federal Financial Report (FFR); and

II. Two new Terms and Conditions on the Notice of Grant Award (NGA).

I. About the new government-wide Federal Financial Report (FFR) that will take the place

of the existing Financial Status Report (FSR)

The Office of Management and Budget (OMB) expects all federal agencies to begin using a new 

government-wide financial reporting form, the Federal Financial Report (FFR) in 2009.When 

fully implemented, the new FFR will combine data that Corporation grantees report on two 

separate forms: the Federal Cash Transaction Report to HHS (FCTR, also known as the “272”) 

and the Financial Status Report to CNCS (FSR, also known as the “269”). 

Unlike the existing FSR, the new FFR includes data fields to specifically report program income. 

The Corporation’s current FFR implementation schedule for its grantees is January 2009. 

Recognizing that the overarching purpose of Senior Corps programs is to address critical human 

and community needs by mobilizing and cultivating volunteers, we anticipate program income 

will be limited. 

The Corporation anticipates that new reporting data element may raise questions about program 

income. 

When program income is in excess of the required non-federal share, the grantee should contact 

the Corporation State Office to request a budget amendment to add a new budget activity. In the 

majority of cases, we anticipate that budget amendment will be approved and that new activity 

costs will be added as a line item in the overall budget against grantee share, thereby increasing 

the total grantee share by an amount equal to the increase in the total budget. The amount of 

Federal funds awarded would not change. There may also be cases where the Corporation will 

reduce the Federal share of the grant to reflect the amount of program income. The Corporation 

State Office will provide guidance and instruction. 

Please see the “Frequently Asked Questions” section beginning on page 2 for more information 

in a question and answer format. . 

Title: Federal Financial Report and Program Income Highlights Date issued: 10/1/2008

Date posted: February 28, 2020 Unique identifier: CNCS 013

Topic: Guidance regarding changes for Senior Corps grantees

Summary: Contains guidance for Senior Corps grantees on reporting

The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This document 

is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.
Federal Financial Report (FFR) and Program Income Highlights 

October 1, 2008 

II. About two new Terms and Conditions 

Two new Terms and Conditions will be added to all RSVP, Foster Grandparent, and Senior 

Companion program Notices of Grant Award (NGA). 

II. Term and Condition #1: Program Income 

NGA Language Background information 

“Program income is to be used to further the purposes of the grant 

program for which the award was made. Program income from all 

sources must be reported and documented. Program income is revenue 

earned as a direct result of the grant-funded program activities during 

the award period and must be retained by the Grantee and used to 

finance the grant’s non-Corporation share. Program income earned in 

excess of the amount needed to finance the Grantee share must follow 

the appropriate administrative requirements of 45 CFR 2541 or 45 CFR 

2543, and cost principles of 2 CFR 205, 2 CFR 225, 2 CFR 230 

(formerly 0MB circulars A-87, A-122 and A-21) 0148 CFR Part 31 and 

be deducted from total claimed costs, or with approval from the 

Corporation through a budget amendment be used to enhance the 

program (additive process). Grantees that earn excess income must 

specify the amount of the excess in the comment box on the financial 

report.” 

While the program income provisions are 

existing grant requirements, the Corporation 

has not previously provided specific 

instructions regarding the implications of 

program income to grant budgets. 

The Corporation will attempt to give Senior 

Corps grantees the broadest possible options 

of accounting for program income. 

Term and Condition #2: Trafficking of Persons 

All federal agencies providing federal assistance are required to this include this Term and Condition as part of the 

grant process. Trafficking of persons is strictly prohibited. The full provision will be included in the NGA. 

Frequently Asked Questions 

(1) Why is the Corporation addressing program income at this time? 

The reason for the timing is an upcoming change in required federal financial reporting. The 

Office of Management and Budget (OMB) expects all federal agencies to begin using a new 

government-wide financial reporting form, the Federal Financial Report (FFR) in 2009.When 

fully implemented, the new FFR will combine data Corporation grantees report on two separate 

forms: the Federal Cash Transaction Report to HHS (FCTR, also known as the “272”) and the 

Financial Status Report to CNCS (FSR, also known as the “269”). Unlike the existing FSR, the 

new FFR includes data fields to specifically report program income. The Corporation’s current 

FFR implementation schedule for its grantees is January 2009. 

(2) What changes to Corporation forms or other documents will Senior Corps grantees see? 

Senior Corps grantees will see three types of changes: 

• Updated eGrants Screens – Grantees will complete the FFR form in eGrants. The current FSR 

screens will be modified to accommodate all of the data fields required on the FFR. Senior 

Corps specific data, such as VSY numbers and the total cumulative volunteer expenses, will be 

moved to the Progress Report for reporting. 

2
Federal Financial Report (FFR) and Program Income Highlights 

October 1, 2008 

3

• Updated financial report printout – A printed copy of the data entered on the eGrants screen 

will be in the new FFR format 

• Notice of Grant Award (NGA) – Beginning in FY 2009, the NGA will include two new Terms 

and Conditions. The first will specify that program income funds must be reported in 

accordance with FFR instructions. The second specifies that all federal grantees are prohibited 

from engaging in trafficking of persons. 

(3) What is program income? 

Program income is defined as “gross income received by the grantee . . . directly generated by a 

grant supported activity, or earned only as the result of the grant agreement during the grant 

period” [45 CFR §2541.250(b) and §2543. 249(a)]. Program income includes fees from services 

performed under the grant, and income from sale of commodities or items fabricated under a grant 

agreement. 

(4) Is reporting program income a new federal requirement?

No. Program income administrative requirements are pre-existing. Senior Corps grantees are 

already required to comply with the following Corporation for National and Community Service 

provisions included in the Title 45 of the Code of Federal Regulations: 

• Part 2543 – Grants and Agreements with Institutions of Higher Education, Hospitals and other 

Nonprofit Organizations 

• Part 2541 – Uniform Administrative Requirements for Grants and Cooperative Agreements to 

State and Local Governments

(5) Is Program income the same as fund raising? 

No. Program income is revenue generated directly from activities supported under the federal 

grant. Fund raising is a set of activities and tasks that expand the resources available to the grantee 

from diverse sources. Program income is allowable and must be properly reported. Time spent on 

fund raising activities is not an allowable charge under the grant. As discussed in the Fund 

Raising materials earlier this year (available online at: http://nationalserviceresources.org/sc-fundomb-cost-principles) time spent on fund raising can be charged to “Excess” on the Senior Corps 

budget form. 

(6) Do contributions from volunteer stations count as program income?

No. Program regulations preclude Senior Corps grantees from requiring volunteer stations to pay 

fees in return for volunteers. Because any resources provided by volunteer stations are strictly 

voluntary, they are classified as contributions or donations to the Senior Corps project and not as 

fees paid in return for volunteers to perform service. 
Federal Financial Report (FFR) and Program Income Highlights 

October 1, 2008 

4

(7) Are funds received by Medicaid Waiver contracts or other similar arrangements considered 

program income? 

Yes. If a grantee enters into an agreement with a party other than a service beneficiary to provide 

support for additional Senior Corps volunteers, as is the standard practice with Medicaid Waiver 

contracts, the revenue generated is program income. However, because these funds will be used to 

increase the scope of the supported programs, as will be reported on the new FFR, the receipt of 

this program income is NOT a compliance issue. 

(8) What if a grantee has earned more program income than needed for the required nonfederal share?

When program income is in excess of the required non-federal share, the grantee should contact 

the Corporation State Office for guidance. We anticipate that in the majority of cases, the grantee 

will request and receive approval for a budget amendment to add a new budget activity (Additive 

Method). There may also be cases where the Deductive Method would apply. The Corporation 

State Office will provide guidance and instruction. Please see examples below. 

• Additive Method Example: A program with excess income may request a budget amendment 

to add an activity (e.g. independent evaluation) to the overall budget, funded with the excess 

income. The amendment, if approved by the Corporation, would add the evaluation costs as a 

line item in the overall budget against grantee share, thereby increasing the total grantee share 

by an amount equal to the increase in the total budget. The amount of Federal funds awarded 

would not change. 

• Deductive Method Example: A $100,000 RSVP project (funded with $70,000 federal share 

and $30,000 non-federal share) realizes $6,000 in program income revenue. The non-federal 

requirement has been met. The project has no plans to expand or enhance its activities, thus the 

grant will not be amended. The $6,000 excess program income reduces the total federal share 

since the matching requirements have already been fully met. Federal funds are reduced from 

$70,000 to $64,000 but the total budget remains at $100,000 total since it is now funded with 

$36,000 in grantee share.