The University of Chicago

Financial Services

  

Cost Transfers

The University Financial Policy No. 2111 addresses the subject of sponsored award cost transfers.

Cost transfers move expenses from one 10-digit account to another. Cost transfers involving sponsored project accounts may be necessary for a number of reasons. They are needed to distribute clearing account expenses, to correct salary distribution estimates, to correct clerical or bookkeeping errors, to transfer pre-award costs, etc.

Federal regulations prohibit transferring costs to sponsored agreements in order to meet deficiencies caused by overruns or other fund considerations, to avoid restrictions imposed by law or by terms of the sponsored agreement, or for other reasons of convenience. Furthermore, the regulations require that cost transfers be made in a timely manner.

The Principal Investigator or designee is responsible for ensuring that cost transfers that are necessary are made within 90 days after the month in which the cost was originally recorded on the Financial Accounting System and that cost transfers are supported by an explanation that describes why the transfer is necessary. An explanation that simply states "to correct error" is not acceptable. If a transfer is made after the time frame noted above, an explanation to support the reason for the delay is required.

The Sponsored Award Accounting office reviews cost transfers to ensure that costs being transferred to an award were incurred during the award's period of performance and that the explanation of the reason for the cost transfer is sufficient.

New Cost Transfer Policy and Procedure -- January 2015 Informational Sessions

Request for Late Cost Transfer Form for ACCTS Transactions

 


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