University of Denver - Office of Research and Sponsored Programs

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Cost Transfers to Sponsored Program Funds

C1.1 - DU Policy Document 10/20/2005

PURPOSE

To clarify the procedures in transferring costs to sponsored program funds.

DEFINITIONS

Cost transfer: The transfer of an expense that was previously posted on one fund to a sponsored programs fund.
Departmental Administrator: The DU employee having departmental administrative duties including the input of transactions into the Banner system.
Principal Investigator (PI): The DU employee (usually a faculty member) who is responsible for the proper conduct of research or other activity described in a proposal, grant, contract or other agreement. Used interchangeably with Program Director.
Sponsored Programs: Programs or projects that are funded by an external entity through an award (grant, contract, etc.) to the University. Sponsored programs include research, instruction, and other sponsored activities.

POLICY

Expenses posted to sponsored programs funds shall be in compliance with all federal regulations, University policies, and specific grant/contract terms and conditions. It is expected that expenses shall be recorded against the correct fund upon initial posting in the financial system. However, in cases where error as occurred, an adjusting entry shall be made as soon as the error has been recognized.

PROCEDURES

Upon recognition of an expense that was not posted to the appropriate sponsored program fund, the Principal Investigator/Program Director (or designee) shall submit request that includes an explanation of how the error occurred and a justification that the new charge is correct. Requests shall be submitted as follows:

For Payroll Expense Transfer, a Payroll Adjustment Form shall be submitted to the Office Research and of Sponsored Programs (ORSP) Accounting to transfer the expense to the correct FOAPA.
For non-payroll expense transfers, the request shall be submitted to the Departmental Administrator. The Departmental Administrator shall input a journal voucher into the Banner system, including the explanation and certification on the Banner form.

If the correction is made more than sixty (60) days from the month of original posting of the expense, the PI/PD must also provide an explanation of the cause of delay. OSSP shall make determination of allowability of cost transfer, and, if authorized, shall approve the payroll expense adjustment or journal voucher to make the correction in the financial system.

Cost transfers beyond ninety (90) days of the original posting of the expense shall be approved only upon determination that cause was outside control of the PI/PD and normal university procedural controls.

NOTES:

Explanations, such as “to correct error” or “to transfer to correct project,” are not sufficient.
Transfers of costs from one project to another or from one competitive segment to the next are not allowable if they are made solely to cover cost overruns.

ROLES AND RESPONSIBILITIES

Principal Investigator / Program Director shall be responsible for the review of financial statements and the accurate and timely posting of expenses to sponsored program funds.

Departmental Administrator shall be responsible for submitting the journal entry into Banner with appropriate explanation and justification.

Office of Research and Sponsored Programs (ORSP) shall be responsible for working with PIs/PDs to assure correct posting of expenses to sponsored program funds, reviewing requests for cost transfers, and posting journal vouchers of approved cost transfer requests.

REFERENCES AND AUTHORITY

Office of Management and Budget (OMB) Circular A-21

Office of Research and Sponsored Programs (ORSP)