Cost Transfers on Cost Reimbursable Grants and Contracts
Steve Martin, Associate Vice President for Research Administration
This policy applies to all Indiana University faculty and staff with fiscal oversight responsibility for cost reimbursable sponsored project accounts and involved with processing non-salary cost corrections (i.e. cost transfers).
It is the policy of Indiana University that Fiscal Officers reconcile accounts on a monthly basis (FIN-ACC-I-1) and any required non-salary cost transfers (i.e. corrections) be completed within three months following the month in which the cost was incurred. Salary cost transfers should be prepared prior to issuance of effort certification documents or corrected during the certification process. Cost transfers should be appropriately justified and include an explanation of the error and justification of how the expenditures benefited the sponsored project. Costs incurred prior to the receipt of an anticipated grant or contract award should be charged to an Advanced Account as stipulated in University Policy SPA-11-017.
This policy provides guidance to ensure best practices in the fiscal management of cost-reimbursable grants and contracts conducted at Indiana University and to meet internal control requirements of Office of Management and Budget (OMB) federal regulation 2 CFR part 200 “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” and other sponsoring agencies. The federal government and other sponsors of IU research have established policies concerning the assignment of costs to a project. Costs transfers must be accomplished in a timely manner as well as properly justified in order to ensure their allowability and allocability.
Appeal Process. Rejected cost transfers may be appealed to the Cost Exception Committee if the requester has additional pertinent information to present to the Committee.
Cost Reimbursable Award: An award in which the sponsor agrees to fund all approved project costs incurred within a grant or contract.
Cost Transfer: Transferring an expenditure from one source to another – from one account to another.