Cost Transfers are after-the-fact reallocation of the cost associated with a transaction from one project to another. Cost Transfers clearly and concisely state why and when the error was made and reflect why the project being charged is appropriate. Cost transfers to NIH grants by grantees, consortium participants, or contractors under grants that represent corrections of clerical or bookkeeping errors should be accomplished within 90 days of when the error was discovered.
When a cost transfer is identified by a department, a cost transfer form will be completed.
The form must include the following:
- The chartfield where the original charge was made (a copy of the statement may be helpful to provide all information needed to make the transfer)
- Why it needs to be moved and what chartfield it should be charged to.
- If over 90 days, an additional explanation as to why it has taken so long to identify and what actions are being taken to eliminate the untimeliness of the request. “Lack of personnel” or “PI out of town” are not acceptable reasons for tardy requests. The institution has agreed to be good stewards of the funds and must ensure charges are allocated correctly. Anyone who is authorized to expend on a grant via the signature card is certifying that they have “knowledge of project costs and the appropriate allocation thereof; ” therefore it should be expensed properly from the inception of the charge.
- All cost transfer forms require the signature of the requester, the department Chair, /Business manager or designee as well as grant accountant.