9.10 Cost Transfer Policy for Sponsored Programs Policy

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Chapter 9: Grants and Sponsored Projects

9.10 Cost Transfer Policy for Sponsored Programs Policy

Related Policy from the Code of Federal Relations Title 2 Subtitle A Chapter II Part 200
• National Science Foundation -- Proposal & Award Policies & Procedures Guide (PAPPG) (NSF 19-1) Chapter X:  Allowability of Costs A.3
• The Department of Health and Human Services Grants Policy Statement (HHS GPS)
Cost Considerations – Cost Transfers (II-43)

Purpose:  To ensure that:  costs are correctly charged to each award, consistent with funder and grantee policies, consistent with grant terms and conditions including the award budget, and that a cost transfer does not constitute a change in objectives or scope without funder approval.

Part 1: Definitions

A grant related cost transfer is the adjustment or correction of an allocation of an expenditure to the connected award.  Grant related cost transfers can occur between costs centers (two or more cost centers) or within a cost center (budget line items within an award.)

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Part 2: Cost transfers requirements -- A grant related cost transfer must:

A. Conform with the Office of Management and Budget Uniform Guidance, Minnesota State Normandale Community College, and sponsor policies to ensure expenditures are allowable, allocable, reasonable, and consistent.

B. Be processed within the timeframe established in this policy

a. Cost transfers should be prepared and submitted as soon as the need for a transfer is identified, but no later than 90 days after the original transaction.
b. Cost transfers exceeding this time frame will require additional documentation as to why the transfer request was not made on a timely basis.

C. Be fully documented with:

a. Justification that shows the detailed reason for the transfer
b. Justification for any delay in the timely processing of the transfer if the transfer date exceeds the definition of timely, above
c. Appropriate approvals.

Part 3 Roles and Responsibilities: 

Principal Investigators/Project Directors:  Principal investigators (PIs) and Project Directors (PDs) are responsible for the monitoring of expenditures, proper allocation of expenses, and timely correction of errors. They work with the Grants Specialist and Grants Accountant to address any expenditures that require an adjustment or correction of an allocation.

Principal Investigator/Project Director’s Supervisor:  The PI/PD’s supervisor reviews and approves the request for a grant funded cost transfer.

Grants Accountant/Fiscal Services: The Grants Accountant (and/or other designated individuals in the Fiscal Services Department) acts as a resource to assist PIs/PDs and the Grants Specialist with any budget- or expenditure-related issues. The Grants Accountant provides regular financial reports to PIs/PDs, and reviews budgets and expenditures to ensure correct expenses are accurately recorded. They notify the Grants Specialist of the cost transfer request and process the journal entry (if non-payroll expense) or submit documentation to Human Resources for a payroll correction.

Grants Specialist: The Grants Specialist provides technical assistance to PIs/PDs to ensure sound grant management and compliance with applicable regulations. The Grants Specialist is responsible for periodically meeting with PIs/PDs and the Grants Accountant to review budget and actual expenditures. They will be notified of any grant funded cost transfer requests, answer questions, and obtain approval of the appropriate Vice President for any cost transfers that exceed the 90-day deadline.


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Policy History:
Date of Adoption:  2020

Department Owner:  Grants

Date and Subject of Revisions:

Next Review Date:  4/12/2023

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