Effective: July 1, 2001
Owner: Office of Sponsored Programs
Latest Revision: June 1, 2009
of Cost Transfers Involving
Sponsored Program Accounts
This Procedure is being revised. Please follow the procedural steps outlined herein, but check back soon for the updated version. Thank you.
This procedure offers guidance for processing cost transfers, which affect Sponsored Program Projects and Awards. Compliance with the following practices will allow for prompt treatment of all requests for cost transfers, involving both expenditures and labor distribution adjustments. For more specific federal guidelines, please refer to OMB Circular A-21: Cost Principles for Educational Institutions, and the National Institutes of Health Grants Policy Statement.
Cost transfers more than 90 days past the transfer date should follow OSP procedure regarding retro approvals, and a request number should be assigned by OSP and included in the expenditure comment field. If the transfer does not include this prior approval number, it will be reversed and/or not released.
Cost transfers involving grant and contract PTA's are reviewed by OSP, and will be reversed and/or not released if they do not follow the guidelines above.
If the cost transfer is reversed and/or not released, OSP will notify the originating department.
Departmental personnel are responsible for preparing and submitting the cost transfer request with the knowledge and approval of the Principal Investigator. Principal Investigators are responsible for reviewing and approving their grant/contract charges and signing off on monthly expenditures.
The Office of Sponsored Programs is responsible for approving or rejecting cost transfer requests, based on the information provided by the departmental personnel.
The Assistant Vice President for Research Administration is responsible for ensuring that this procedure is necessary, reflects actual practice, and supports University policy. The Director for Research Accounting and Award Management is responsible for ensuring that this procedure is followed.
This activity is performed whenever departments prepare cost transfers affecting Sponsored Program Awards ("G" award numbers OR “Z” award numbers).
Cost transfers are to be in accordance with University policy and charges should only be transferred to sponsored program awards if they meet the following criteria:
· Charges must have been incurred to meet the objectives of the specific sponsored program award.
· Charges must be allowable under the terms and conditions of the award.
· Charges must be reasonable.
· Funds must be available to cover the cost being transferred.
· The transfer is not to correct a deficit by transferring charges to another sponsored program award. Cost overruns on federal awards must be counted as cost share.
· The transfers is at the direction of the Principal Investigator.
· The reason for the transfer is properly documented as detailed below.
I. The following rules are for preparing an Oracle cost transfer usage batch. Failure to follow these steps will likely result in your transfer request being rejected:
A. Provide a description/explanation justifying the transfer of charges in the expenditure comment field, to include the reason for the cost transfer and why this charge is appropriate for the grant to which it is being moved. If you need extra space, please attach any supporting documentation or explanation using the Paperclip feature on the cost transfer batch. If you use the paperclip feature, please note “See Paperclip” in the comment field.
B. Provide the original reference number in the expenditure comment field, as well as the original expenditure item date (the date the expenditure was incurred) of the original transaction, and the original transferred date(date the expense hit/cleared/posted to your books).
[The IS.FM_Expenditure Detail Discoverer report contains the expenditure item date and the original transferred date in the "Grants Format" tab of that report.]
C. Watch out for these common errors:
Be sure that the expenditure item date in the body of the Oracle cost transfer screen accurately reflects the date when the charge was incurred on the Award-Project. Since Oracle will default this date in, be diligent in reviewing this date for accuracy. If necessary, correct the expenditure item date by over-keying the date. This should not be a problem when using the original expenditure item date.
Do not enter any one-sided entries.
Entries must always balance/net to zero. To correct an unbalanced entry, you must reverse the entire cost transfer, not just the out-of-balance lines.
(see Roman Numeral III for an explanation of OSP rejection codes)
II. Cost Transfer Processing for Internal Service Providers (ISP's):
In the Expenditure Comment field, the description of the service and the
month in which service was provided should be noted (e.g., “Installed a
replacement modem for a PC in the Microbiology dept in March 2003.”)
III. The numerical
Reworking Codes which provide information
The following link provides guidance in the documentation and processing of Labor Distribution (LD) Adjustments impacting sponsored projects (G and Z awards). Once this new process has stabilized, this guidance will be absorbed into the University’s formal procedures. Questions should be directed to the Director of Compliance and Outreach in the Office of Sponsored Programs.
End of Activity
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