Cost transfers are after-the-fact reallocation of a direct cost from one funding source to another. In other words, you are requesting to move money to pay for a direct charge on an award - salary or non-salary - to another project or department account.
Cost transfers must be initiated within 30 days of the date of discovery, and must meet all federal, state and institutional guidelines.
Three issues MUST be addressed in the documentation and justification for the cost transfer:
- Why was the expense originally charged to the project from which it is now being transferred?
- Why does the expense now need to be transferred to the receiving funding source?
- What action will be taken to eliminate a future need for this type of cost transfer?
- Review expenses monthly to ensure any transfers are made in a timely manner.
- Work to limit the number of cost transfers you have on an award
- Be mindful of the time between the original posting of the expense and the cost transfer request. Do not let costs linger on the wrong account for too long. Remember, monthly reviews prevent this.
- Have a good reason for the transfer, not just because a project is out of money.
- Do not transfer partial amounts unless the item is being used by multiple projects and that division was approved in the project budget.
Remember, the burden of proof falls to UTMB when justifying costs meet the cost principles and Uniform Guidance standards.