TUC Sponsored Programs

Cost Transfers


Effective Date: 1/1/14

______________________________________________________________
Table of Contents


Forms
THE UNIVERSITY CORPORATION'S COST TRANSFER POLICY
________________________________________________________________________

 

Forms

Request for Cost Transfer (excel)

 

THE UNIVERSITY CORPORATION'S COST TRANSFER POLICY


A 'Cost Transfer' is an after-the-fact transfer of an actual expense, previously charged elsewhere, to/from a sponsored program. Ideally, all costs should be charged to the appropriate award when first incurred. However, there are circumstances where it may be necessary to transfer expenditures to an award subsequent to the initial recording of the charge.

Cost Transfers include:

  • A transfer of expense from one sponsored program to another sponsored program. (transfer in between)
  • A transfer of expense from a non-sponsored program (endowment, agency account, etc.) to a sponsored program (transfer in)
  • A transfer from a sponsored program to a non-sponsored programs (transfer out)


Cost Transfers do not include:

  • A transfer of budgets within a project (budget revision)


Timeliness and completeness of explanation of the transfers are important factors in supporting allowability and allocability in accordance with the cost principles of the circular.

 

Allowability

Examples of typical circumstances where cost transfers are allowed are:

  • Transfer of allowable pre-award costs from holding or preliminary accounts
  • To correct clerical errors 
  • To reallocate effort to reflect actuals
  • For routine allocation of shared services
  • To allocate service center charges, etc.
  • To clear overdrafts from federally-sponsored projects to unrestricted funds

Examples of typical circumstances where cost transfers are not allowed are:

  • Transfer of expenses between sponsored projects in order to remove a deficit.
  • Transfer of expenses to spend the balance of an award.
  • Transfers requested more than 90 days after the end date of a sponsored project.



Required Documentation

All cost transfers must be accompanied by written documentation that contains a full explanation and justification for the transfer. This includes:


 

Justification

To comply with the cost allowability and allocability requirements of OMB Circular A-21, it is necessary to explain and justify transfers of charges. The justification should be prepared in such a way that a person outside of TUC would be able to understand why the cost transfer is necessary and should address the following questions:

  • Why was the expense originally charged to the project from which it is now being transferred?
  • Why the charge should now be transferred to the receiving grant or contract?
  • What actions will be taken in the future to prevent the need for another transfer of this type? 
  • If applicable, why is this transfer being requested more than 90 days after the cost was initially charged?



Requestor 

Cost transfers are usually requested by the Principal Investigator or an authorized signer on the project. In some cases, for instance in case of clerical errors, the TUC-SP Budget Analyst can also request a cost transfer. 

Approver

Cost transfers requested by the Principal Investigator or an authorized signer  can be approved by the TUC Director, Sponsored Programs or by the TUC Sponsored Programs Supervisor. 

Cost transfers requested by the TUC Sponsored Programs Supervisor must be signed by the TUC Director, Sponsored Programs, or the TUC Executive Director, or the TUC Chief Financial Officer. 

All cost transfers that are made later than 90 days after the posting of the charge to the accounting records must be signed by the TUC Director, Sponsored Programs, or the TUC Executive Director, or the TUC Chief Financial Officer. 


Deadlines

Less than 90 Days after the Charge
Cost transfers should be prepared as soon as the need for the transfer is identified. The deadline for cost transfers is 90 days from when the charge was first posted to the project. 


Later than 90 Days after the Charge
In few exceptional circumstances, cost transfer may be required later than 90 days after the charge. In addition to the regular documentation, these late cost transfers require:

  • a detailed explanation by the Principal Investigator for the reason of the delay beyond the 90 day deadline
  • a signed statement by the Principal Investigator of the steps taken to insure that such late transfers will not occur again

The Director Sponsored Programs, Executive Director, or Chief Financial Officer must approve cost transfers that are made later than 90 days after the posting of the charge to the accounting records.

 

Later than 90 Days after the End of the Project

No cost transfers can be made later than 90 days after the entire federal award has expired.


Other Considerations

Effort Reporting
Faculty may be required to recertify their Effort Report if the cost transfer involves faculty payments.