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Research

Cost Transfers

A cost transfer is the reassignment of an expenditure between funding sources.

Costs should be allocated to the appropriate funding source when originally incurred. However, it is possible that it may be necessary to transfer expenditures from one account to another. Transfers such as these require that are frequent, late or inadequately explained can sometimes raise questions about the propriety of the transfers. Because of this, you may need to request a cost transfer.

View the Cost Transfer Form

Cost Transfer Justifications

Requests for a cost transfer must be supported by documentation justifying the transfer. This justification should include an explanation of the transfer and how the expense is related to the award. A certification of the correctness of the new charge by the PI is also required.

Allowable Cost Transfers

OMB Circular A-21 has conditions and limitations on cost transfers. Cost transfers to sponsored projects are allowable if they meet all of the following conditions:

  • Allowable in accordance with the terms and conditions of the award document
  • Supported by documentation justifying the transfer
  • Certified as to the correctness of the charge
  • Made in a timely manner - some federal agencies require cost transfers be made within 90 days from the original entry

Expense Transfers

Expense transfers are corrections to posted transactions on current, active awards. Transfers should be requested by the principal investigator within sixty days of receiving a monthly expense listing from Research and Sponsored Programs.

Requests for an expense transfer must be supported by documentation justifying the transfer. This justification should include an explanation of the transfer and how the expense related to the award.

Unallowable Justifications for Transfers

Federal cost principles do not permit the transfer of costs to a sponsored agreement if the justification for the transfer is for one or more of the following:

  • To clear deficits
  • To avoid restrictions imposed by law or by the terms of the sponsored agreement
  • For other reasons of convenience
  • After an effort report has been certified
  • After the University fiscal year has been closed
  • After the sponsored project has been closed

Cost transfer requests may be returned under the following circumstances:

  • Inadequate documentation is provided with the transfer request
  • The request for cost transfer does not meet the time deadline
  • The sole purpose of the transfer is to move a deficit from one sponsored project/contract to another
  • The purpose of the transfer is "use up" unspent funds from a sponsored grant or contract
  • There are missing certifications or PI signatures

Fiscal Year Cut Off

Please note the University's fiscal year-end needs to be closely observed when requesting cost transfers. Expenses that have been paid in a prior fiscal year cannot be moved to a grant/contract/sponsored project in the new fiscal year. PIs need to make sure they have examined their expense reports and requested transfer both to and from awards prior to the year-end cut-off.