A cost transfer is the assignment of
an expense to a sponsored agreement that was initially
recorded elsewhere in the University’s general ledger.
Sponsors such as the Federal Government have regulations
which expect robust internal controls and a full justification
on why a cost transfer involving sponsored agreements is
Cost Transfer University
Operating Procedure promotes important business
practices to reduce cost transfers, improve internal
controls and identify/submit cost transfer requests in a
timely manner using a standardized form. The UOP provides detailed
guidance in the following areas:
- Minimizing cost
- Identifying and
correcting costing errors in a timely manner
- Justifying and
documenting a cost transfer request
- Authorization and approvals
- Requirements for
Untimely cost transfer requests
official of an Unit should assess its current business
practices and make necessary adjustments to comply with the
Cost transfer UOP within their respective unit. Here are some
key assessment questions to use:
- Are existing processes effective in charging costs correctly and timely to sponsored agreements?
- When the
probability of funding is extremely high e.g. non-competing
proposals, is my unit requesting budgets to be established
in advance accounts for sponsored agreements?
- Are departmental personnel who are allocating their effort to sponsored agreements reviewing their planned effort on a quarterly basis and are their effort allocations being updated to reflect changes?
- Are encumbrances
and expenses posted to the Unit's department suspense
account being reviewed on a monthly basis and transferred in
a timely manner?
- Does the justification and documentation for cost transfers requests typically provide a full explanation from which an independent reviewer can understand the transfer request and conclude that the expenditure is appropriate?
- What proactive
measures can the unit implement to minimize untimely cost
- Is the process to identify/implement/track systemic corrective action effective in preventing untimely cost transfer requests?
Last modified May 09 2016 07:04 AM