The University of Memphis
The University is mandated to establish consistent practices for defining and processing cost transfers between institutional accounts and sponsored agreements, or between sponsored agreements. All cost transfers must be submitted to the Accounting Office within 90 calendar days of the cost incurred, or within a shorter time frame if mandated by the sponsor. Cost transfers will be allowable, allocable, reasonable, timely, property documented and properly approved.
This guidance has been established to meet federal regulations and compliance standards set forth in:
OMB Uniform Guidance (2 CFR 200) - Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Dec 2014).
NIH Grants Policy Statement revised Nov 2016, Part II, Subpart A, Terms and Conditions of NIH Grant Awards – Cost Considerations – Cost Transfers, Overruns, and Accelerated and Delayed Expenditures.
Title 48 in the Code of Federal Regulations (48 CFR), Chapter 99, part 9905, Cost Accounting Standards (CAS) for Educational Institutions:
Explain the need for a cost transfer, the requirements of a cost transfer journal entry, the time frame required and the method for processing cost transfers through the accounting system.
Account Structure: Fund, Organization, Account, Program, Activity
The reallocation of salaries from one University FOAPA to another.
|Salary Redistribution Request Form|
Form used to request the transfer of salary charges between FOAPAs.
|Transfer Voucher Form|
Form used to request the transfer of non-salary charges between FOAPAs.
A cost transfer is the reassignment of an expense between institutional accounts and sponsored agreements, or between sponsored agreements. After an expense is charged initially to one FOAPA, it is subsequently transferred to a different FOAPA. Cost transfers include reassignments of salaries and benefits, other direct costs, and associated indirect costs.
The University is committed to ensuring that all cost transfers are consistent with University and standard accounting policies, and are conducted in accordance with sponsors' terms and conditions, and regulations.
Reason for concern: Transfers that are frequent, tardy or inadequately explained, particularly on grants with overruns or unexpended balances, raise questions about the propriety of the transfers, and the reliability of the University’s accounting system and internal controls.
Consequences if a Cost Transfer does not meet Government Requirements: As required by federal regulations, auditors conduct extensive reviews of federal grant and contract expenditures, which include detailed evaluations of cost transfers. In the event that a cost transfer does not meet the government requirements, the dollar amount of the transfer will be disallowed, and the area responsible for the grant must reimburse the grant for the amount of the disallowed cost transfer.
Cost transfers must:
Cost transfers more than 90 days old:
Examples of acceptable cost transfer practices:
Examples of unacceptable cost transfer practices:
|Roles and Responsibilities|
Principal Investigator/Program Director
Office of Sponsored Programs
Grants and Contracts Accounting
|Salary Redistribution Request|
|University of Memphis Policy 1719 – Charges to Sponsored Agreements|
| ||UM1720 -- Revised February 9, 2017|
UM1720 - Issued: June 28, 2011
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