Policy 2111: Cost Transfers

2111 Cost Transfers

Subject Area: Sponsored Awards
Responsible Office: Financial Services
Sponsor: Chief Financial Officer
Originally Issued: March 1994
Revised: March 1998, August 2007, February 2010, August 2011, January 2015
Refer Questions To:  Christine Sorensen, 773-702-2398

Purpose: To establish responsibilities for cost transfers involving sponsored projects.

Policy

  1. Financial Services is responsible for establishing policies and procedures for cost transfers involving sponsored projects.
  2. Federal regulations prohibit transferring costs to sponsored projects in order to meet deficiencies caused by overruns or other budget
    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.
  3. The principal investigator or his/her designee is responsible for ensuring that cost transfers that are necessary to distribute clearing account expenses, to correct salary distribution estimates, to correct clerical or bookkeeping errors, or to make other accounting adjustments are:
    1. Made within 90 days after the month in which the cost was originally recorded in the Financial Accounting System (FAS).
    2. Supported by an explanation that accurately describes in sufficient detail why the transfer is necessary.
    3. In compliance with Financial Policy No. 2109, Approval of Direct Cost Expenditures.
  4. Cost transfers not made within 90 days after the month in which the cost was originally posted in FAS need to be approved by the principal investigator or his/her designee of the sponsored project being charged. Additionally, the transfer request must explain why the transfer was not requested in a timely manner. Financial Services will review these on a case-by-case basis and approve after sufficient justification and documentation has been provided.
  5. Cost transfers are not allowed for transactions more than two fiscal years after the cost was originally posted in FAS without advance written approval from the Executive Director of Sponsored Award Accounting.