Cost transfer is a process whereby any expenditure improperly assessed to a sponsored project account is transferred to the correct account. It is the responsibility of the Principal Investigator (PI) to make sure transfers are made promptly after the error is discovered and within 120 days of the original charge unless close-out requirements necessitate a shorter period of time. PIs should contact the Grants & Contracts Business Manager.
Retroactive cost transfers represent one of the most common areas for audit disallowance. Federal regulations (OMB Circular A-21) define improper cost transfers as, "Any costs allocable to a particular research agreement under the standards provided in this circular may not be shifted to other research agreements in order to meet deficiencies caused by overruns or other fund considerations, to avoid restrictions imposed by law or by terms of the research agreement, or for other reasons of inconvenience."