1 Cost Transfers Policy on cost transfers to federally funded awards

2 Cost Transfers Definition An after-the-fact reallocation of costs, either labor or non-labor, to a federally funded award Federal requirements limit the circumstances under which cost transfers are allowed

3 Cost Transfers Procedures for non-labor cost transfers within 90 days Fill out cost transfer and justification form Answer questions 1 through 3 in Section C Signed by PI or cognizant administrator Send form and supporting documentation to Project Accounting Project Accounting will notify if transfer is not approved

4 Cost Transfers Procedures for labor cost transfers within 90 days Campus personnel inputs into Labor Distribution Module Must address the following Indicate name of designated/knowledgeable individual who has reviewed and approved the transfer Explain why the labor expense was posted to the incorrect PTA Explain why the labor expense should be transferred to the proposed receiving account. How does the receiving account benefit? Explain why, based on the terms of the receiving award, the charges are allowable and allocable Will be reviewed and approved by LDU at Caltech Depending on the Division, a signed cost transfer and justification form may be required

5 Cost Transfers Procedures for transfers after 90 days Fill out cost transfer and justification form Answer questions 1 through 5 in Section C Must be signed by PI, Division Chair and Project Accounting official Send form and supporting documentation to Project Accounting Project Accounting will notify submitter if transfer is not approved If a labor transfer, PA will forward copy of form to LDU for system approval

6 Cost Transfers What qualifies as an extenuating circumstance? Late issuance of appropriate documentation for reasons beyond the control of the requestor, such as late issuance of an award by a funding agency Failure of another department to take action when supporting documentation had been properly submitted Transfer of expenditures from an unrestricted account to a federal award that was not in place when the expense was incurred

7 Cost Transfers What will not qualify as an extenuating circumstance? Absences of the PI or cognizant administrator Shortage or lack of experience of the staff administering the awards Federally funded sponsored accounts used as a holding account for expenditures If in doubt send PA a draft for review and feedback before obtaining signatures