A cost transfer reassigns expenditures, either Personal or Non-Personal service, that were previously recorded in one award to another award. A transfer must be reviewed for the following prior to approval:
- Appropriateness - The award to which a cost is transferred must have received benefit from the goods or services related to the cost being transferred
- Consistent with Sponsor Guidelines - The sponsor guidelines governing the award to which an expense is transferred must allow the expense
- Funds Availability - Sufficient funds must be available in the applicable award to cover the transactions
- Adequate Documentation - All transfers require a justification that explains why the transfer is being requested and must address why the charge wasn't allocated appropriately when originally incurred, as well as why the charge is appropriate for the new award
Cost transfers more than 90 days old will be considered on a case by case basis and only with proper justification. Sponsored Funds Financial Management reserves the right to reject any cost transfer request which places the University at risk for an audit finding or disallowance.
Certain cost transfers are suspect by their very nature and are to be avoided whenever possible. These include:
- Transfers to or between sponsored awards
- Transfers that are late (outside 90 day policy)
- Transfers occurring at the end of an award or subsequent to the term date of the award, thereby giving the appearance of utilizing funds inappropriately
- Transfers without adequate explanation
- Transfers between awards to clear an over expenditure
Transfer requests for payroll charges should be documented on the Salary and Wage Cost Transfer Form. Other Than Personal Service (OTPS) cost transfers must be submitted on the Cost Transfer Form.
The transfer of cost must be approved by the operations manager or designee and documented before being processed in the RF Oracle business system. The person(s) preparing or processing the cost transfer may not approve the cost transfer.