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UT Arlington Cost Transfer Policy

Policy Name: Cost Transfers to Grant Accounts

Policy Number: 1000-002
Scope: All Grant Accounts
Created: 5/4/2006
Revised: 1/8/07, 9/16/11
Responsible Office/Person: The Office of Grant and Contract Services

I. PURPOSE
All costs applicable to a sponsored activity should be correctly recorded in a timely fashion to the
appropriate grant account. Delays or errors in expenditure processing and subsequent cost
transfers can affect invoicing and payments received from sponsors that could potentially lead to
disallowed costs or damage the relationship with sponsors of university research.

II. POLICY
Transfers of cost to, from or between sponsored projects can be made to correct bookkeeping or
clerical errors in original charges. Such transfers must be requested as soon as possible and be
supported by documentation that contains an explanation of the error (with transaction number
references) and be in compliance with the terms and conditions governing the award.

Transfers to other sponsored projects in order to meet deficiencies by overruns or other
fund considerations are not acceptable as justification.

II. DEFINITIONS
A Cost Transfer is: a transfer of costs to, from or between grant accounts for a charge previously
recorded elsewhere. Examples:
  • transfer pre-award costs from a departmental holding account
  • correct a clerical error
  • reallocate effort expenses to reflect actual effort certified per the effort card
  • reallocate shared services that were previously charged elsewhere, etc.
III. PROCEDURE
Requests for Cost Transfers involving grant accounts should be emailed to the Office of Grant
and Contract Services (GCS) – Post Award Grant and Contract Specialist or to ogcs@uta.edu for
approval. This correspondence should detail the cost transfer request, provide a detailed
justification for the transfer and identify the accounts involved. Justification must be more
descriptive than “correction of error”. If approved, GCS will forward the approval to the Office of
Grant Accounting for the transfer of the expense in the DEFINE accounting system.

All Cost transfers more than 90 days after their occurrence will require higher scrutiny, more
extensive justification, and approval from the Assistant Vice President Research or the Director of
Grant and Contract Services.

Payroll Corrections:
Effort Reporting payroll corrections noted on effort cards normally require a subsequent payroll
adjustment or correction and are completed by a change to the individuals appointment through
the normal appointment process in the accounting system.

IV. ROLES AND RESPONSIBILITIES
It is the responsibility of each Principal Investigator and department to:
  • Ensure compliance with the Cost Transfers to Grant Accounts Policy.
  • Identify expenses requiring Cost Transfer.
  • Retain hard copies of all related documentation in accordance with applicable record retention regulations.
  • Ensure all personnel engaged in the financial administration of grant accounts are familiar with the Cost Transfers to Grant Accounts policy.
GCS has review and approval responsibility for cost transfers and is available to assist in
interpretation and implementation of the policy, including prior review of explanations for
transfers crossing the 90-day lateness threshold. For repeated Cost Transfers, GCS may train
the PI and department personnel in the affects such transfers have on sponsored funding and
where appropriate inform the PI’s supervisor or other administrative personnel.
Grant and Contract Accounting will review and approve the transfer and make any necessary
adjustments or entries into the DEFINE accounting system.

Related policies and guidance:
OMB Circular A-21 (2 CFR Part 220)

OMB Circular A-110

OMB Circular A-133

Guide to Allowable Cost

Allowable Cost Policy

Effort Reporting Policy