Applies to:	Original Policy Date:	Date of Last Review:	Approved by:
Faculty, Staff and Students	November 13, 2013	March 3, 2022 July 2024	Dr. John Nicklow, President

Policy Owner: The Office of Sponsored Programs

Policy Purpose

With regard to the transfer of expenditures to and from sponsored projects, every effort must be made to correctly record charges to the appropriate sponsored projects when the original entry is made in the accounting records. Occasionally, however, it may be necessary to transfer a cost to another project or fund to correct posting errors, or to transfer a cost to a closely related sponsored project. The university is required to maintain records supporting charges to all sponsored projects in accordance with the applicable federal regulations and in accordance with the terms and conditions of the sponsored agreement.

Policy Scope

This policy applies to all costs – either salaries or operating expenses – transferred to or from a sponsored project.

Policy Statement

All expenditure transfers to or from a sponsored project must be recorded in the receiving fund within 90 days after the initial charge was recorded or prior to the submission of the final expenditure report to the sponsor, or the final request for reimbursement from the sponsor, whichever occurs first.

Procedures/Guidelines

Costs to be transferred on sponsored projects can be separated into two general categories: salary expenses and operating expenses. Circumstances in which a transfer may be deemed necessary include those to correct errors, to transfer costs to a closely related project, or to remove cost overruns.

In all cases, OSP will review cost transfers (salary and non-salary) to determine if they are allowable, allocable, reasonable, consistent, and timely under the terms of the sponsored agreement. See Procedures/Guidelines for Cost Transfers on Sponsored Projects for further details.

Definitions

Salary expenses – salaries of faculty and staff and wages for graduate assistants Operating expenses – lab supplies, travel, publication costs, equipment (both capital and non-capital expenses), etc.

Compliance Reference

Federal Office of Management and Budget (OMB) Guidance 2 CFR Part 200

Responsibilities

Each Principal Investigator (PI) on a sponsored project is responsible for monitoring their expenses to ensure that cost overruns do not occur. PIs also bear the responsibility for providing timely notification to their department and/or dean’s office so that errors are remedied upon identification and cost transfers are processed promptly when the need arises.

Enforcement

Failure to comply with the cost transfer policy may result in financial penalties, expense disallowances, and damage to Florida Tech’s reputation.