A cost transfer is defined as any adjustment of expenditures to a sponsored project to align costs with the actual benefit received on the sponsored project.  OMB Circular A-21’s rules apply to cost transfers – costs must be allowable, allocable, reasonable, and consistently treated in order for them to be eligible for transfer.  Cost transfers may only be processed by Sponsored Projects Accounting.

All cost transfers must be documented and contain an adequate explanation of how the error occurred and how the expense is related to the account receiving the expense.  An explanation that merely states that a transfer is being process “to correct an error” or to “transfer a cost to the correct project” is not sufficient and will not be approved.

Cost transfers that no not contain an adequate justification will be returned to the originating department for further documentation and/or explanation before the Office of Sponsored Projects Accounting will issue an approval. 

For further detail on costs transfers, please consult the Office of Sponsored Projects Accounting’s Cost Transfers Procedures/Policy.