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Office of Research and Project Administration

SPONSORED PROGRAMS COMPLIANCE


Cost Transfer Checklist


A cost transfer is mechanism by which to move an expense, often done to reallocate a charge made in error. It may also be considered a type of allocated cost. All payment or transfer requests are subject to audit scrutiny. Note that it is inappropriate to transfer expenditures to a sponsored programs account simply to utilize available funds, if the charge does not meet the criteria of allowability, allocability and reasonableness.
To determine whether the cost transfer is appropriate, the following considerations are important:

  • Is the expense allowable under the specific award, OMB Circular A-21 and University policy?
  • Does the transferred expense directly benefit the project?
  • Are there any restrictions (general or specific) that preclude the transfer? Does the sponsor require notification if the expense was not budgeted?
  • Does the request include adequate detail of the specific costs to be transferred (e.g., ledger dates, transaction ID's, descriptions and amounts)?
  • Is the request adequately justified (i.e., why was the expense charged to the initial account)?
  • Has the cost transfer been approved by the PI?

Cost transfers or adjustments should be made as expeditiously as possible. Request for transfers greater than sixty (60) days after the ledger dates (when the initial cost appeared) require the signature of the PI and the Department Chair. Requests in excess of ninety (90) days require the signature of the PI, Department Chair and Dean. Therefore, careful review of monthly ledgers is critical to avoid delayed corrections.

  • Has signature of the Department Chair been obtained for requests to transfer transactions over 60 days old?
  • Has the signature of the Dean been obtained on transactions over 90 days old?


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