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The purpose of this policy is to provide information to Principal Investigators,
Research Administrators, Chairs and Deans concerning government cost transfer
policies. An example of these policies can be found in OMB Circular A-21,
Section C.4.b and NIH Grants Policy Statement (12/03) Part II: Terms and
Conditions….Subpart A: General …..Cost Transfers. Frequent, tardy and
inadequately explained transfers, especially those which involve sponsored
projects with overruns or unexpended balances raise questions regarding the
validity of the transfer and the reliability of the University’s Accounting
System and internal controls. Non-federal sponsored projects may have
similar restrictions and therefore are subject to these cost transfer
policies.
Various government agencies have published cost transfer policies. These
policies generally include specific requirements for written documentation,
specific time limitations for making a transfer, and prohibition on transfers
used solely to cover a project deficit.
Transfer of charges to and between sponsored projects should be kept to a
minimum. Account numbers should be properly reflected on purchase
requisitions, travel authorizations, etc. when initiated and when work orders
are placed at service centers within the University.
To ensure audit requirements will be met, any cost transfers involving
sponsored projects must meet the following criteria:
1) The transfer should be made within 90 days of the original charge.
a) In the event a transfer is greater than 90 days, the Non-Payroll
Cost Transfer request form must be completed, signed by the
Department Head or Dean and submitted with the journal entry.
i) These transfers will be reviewed under scrutiny and may need
further justification and additional approvals.
2) The transfer must be allocable and allowable to the sponsored project
receiving the charge.
3) The transfer must contain an explanation of why the transfer is necessary.
4) The transfer must contain documentation such as the management report.
5) Cost overruns must be transferred to non-sponsored accounts.
a) If a charge should have been shared between two or more sponsored
projects, an explanation of why it was not charged correctly must
be submitted.
Cost transfer request will be returned to the Department if:
1) Documentation required for the transfer is missing.
2) The cost to be transferred was incurred outside the effective dates of
the sponsored project.
3) The sole purpose of the transfer is to move deficit from one sponsored
project to another.
4) The sole purpose of the transfer is to “use up” unspent funds from a
sponsored project.
In summary, cost transfers must contain a justification for the transfer. An
explanation stating “to correct error” or “to transfer to correct project” is
neither sufficient nor satisfactory. The Non-Payroll Cost Transfer Request
Form is found on the website of Contract and Grant Accounting. It is
critical that all management reports for sponsored projects be reconciled
in a timely manner in order to facilitate the timely submission of cost
transfers.
NON-PAYROLL COST TRANSFER REQUEST form
DownLoads:
[Non-Payroll Cost Transfer Request (Acrobat Reader - PDF)] 
[free Adobe Acrobat Reader software to read PDF forms] 
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