A cost transfer is the journal entry (transfer) of a cost incurred initially on one university program/project to a sponsored project (funds 30/31). There are only certain conditions under which cost transfers may be accepted as charges to sponsored projects.
Any project direct expense should be charged to the project(s) that is/are benefited by the expense, so long as this type of expenditure is reasonable and is allowable by:
- The Sponsor
- OMB Circular A-21
- Cost Accounting Standards
If a direct expense has been charged to an incorrect project number, this error should be promptly corrected via a Journal Entry (JE) or Payroll Expense Transfer (PET). Any such JE/PET that includes a speedtype that is contained in Funds 30 or 31 will incorporate a Cost Transfer Certification Statement. This certification statement requires that all expenses contained on the JE/PET are true and correct, that cost transferred to a sponsored project (Fund 30 or 31 FOPPS) are reasonable, allowable, allocable, and in accordance with award terms.
