Sponsored Program 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:
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Is the expense allowable under the specific award, the U.G.and University policy?
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Does the transferred expense directly benefit the project?
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Are there any restrictions (general or specific) that preclude the transfer? Does the sponsor require notification if the expense was not budgeted?
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Does the request include adequate detail of the specific costs to be transferred (e.g., ledger dates, transaction ID's, descriptions and amounts)?
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Is the request adequately justified (i.e., why was the expense charged to the initial account)?
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Has the cost transfer been approved by the PI?
Cost transfers or adjustments should be made as expeditiously as possible. A form is available to document the appropriateness of the cost transfer ("Journal Entry Request Form") on the Finance website.
If a non-salary cost transfer is submitted more than 90 days following the month end the original cost was recorded on the ledger, additional approval is required by a responsible official who is at a higher organizational level than the person requesting the cost transfer, consistent with the University's "one-over-one" authorization policy.
If the costs to be transferred are salary expenses, then the HRMS Form 800-Proposed Change of Pay Distribution must be completed and submitted to Payroll Department for review and approval. Two responsible officials must sign the Form 800. The first responsible official is a person who can make the correct determination of allocability, allowability, and reasonableness of the costs and provide a sufficient justification for the transfer being requested. The second responsible official must be at a higher organizational level than the person requesting the change in salary distribution, consistent with the "one-over-one" authorization policy.
The Form 800 must also have the certification section signed by a responsible official who can verify that the salary distribution in effect prior to the change being requested is a reasonable reflection of effort that occurred during that period.
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