Cost Transfers on Cost Reimbursable Grants and Contracts
James P. Becker, Executive Director of Grants and Contract Services
This policy applies to all Indiana University faculty and staff involved in the fiscal operations and administration of grants and contracts or otherwise with the authority to identify expenses under grants and contracts
It is the policy of Indiana University that cost transfers be completed within a reasonable time frame and accompanied with appropriate justifications. Cost transfers should comply with best practices, Office of Management and Budget Circular A-21, federal contracting policy and other specific sponsor requirements, as applicable.
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 requirements of Office of Management and Budget Circular A-21 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 properly and completely explained and justified in order to ensure their allowability and allocability. They must, as well, be accomplished in a timely fashion – generally considered within a 90-day period from when the cost was first recorded.
Appeal Process. Rejected cost transfers may be appealed to the Exception Committee. Parties appealing the committee’s rejection may, if they so desire, submit additional information and meet with the Committee in order to ensure a complete and clear communication.
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.