Cost Transfers are necessary to ensure expenses are charged to the appropriate sponsored project or department. Cost transfers must be justified, documented, and completed in a timely manner to support the allowability and allocability of such costs.
Costs should be charged to the correct federal award when first incurred. Cost transfers to all sponsored projects should be completed within 90 days of when the transaction originally occurred and posted in the general ledger. Transfers must be supported by documentation that fully explains how the error occurred and a valid reason for the transfer to another project.
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Based on the Principal Investigator's (PI's) direction and approval, a retroactive cost transfer is justified in the following circumstances:
Cost transfers between sponsored activities are not allowed in the following circumstances:
All payroll and Other than Personnel Services OTPS (non-payroll) cost transfers related to sponsored awards should be submitted within 90 days of the original date the transaction was posted in the University’s general ledger. If a cost transfer is over 90 days, additional reasons for the transfer must be provided; these include why the cost transfer is late and actions that will be taken to eliminate future late cost transfers. Cost transfers over 90 days are seldom approved.
All cost transfers must include a detailed explanation and justification (i.e., rationale for allocation among projects) for the transfer. For example, an explanation that merely states that the transfer was made to “correct an error” is not sufficient.
Payroll: The PI or designee must submit a Personnel Action Submission System (PASS/xPASS) request (retroactive adjustment) to their school/departmental Human Resource Officer (HRO) for approval.
Other Than Personnel Services (OTPS): OTPS transfers must be submitted through the Journal Entry Management System (JEMS) with an appropriate explanation. The department must maintain documentation, which shows that the PI approved cost transfers between closely related projects.
Learn more about systems used for post-award administration.