Chapter 7-400: Cost Transfers

Cost transfers occur when goods or services originally paid for from one University account/fund are subsequently transferred to another account/fund. University guidelines on cost transfers are contained in Business and Finance Bulletin A-47 University Direct Costing Procedures, section V. “Expenditure Adjustments,” which states that:

Once an expense entry has been recorded in an account in the general ledger, it is appropriate to make expenditure adjustments only in the following situations:

1. To correct an erroneous recording...

2. To record a change in the decision made originally as to the use of goods or services...

3. To redistribute certain high numerical but small individual and/or minor charges (e.g., copy machine rental and paper costs, telephone charges, mailing charges, or charges for office supplies)..…….

7-410 Justification for Cost Transfers

Transfer of costs to or from extramurally-funded contracts, grants or cooperative agreements should be made in accordance with applicable campus procedures. Justifications required for cost transfers are detailed in section V.B. of Business and Finance Bulletin A-47, University Direct Costing Procedures.

7-420 Documentation for Cost Transfers

University documentation requirements for cost transfers are contained in Accounting Manual Chapter A-000-7, "Official Documentation Required in Support of University Financial Transactions," section II.D.

7-430 Timeliness of Cost Transfers

Campuses may restrict cost transfer requests that are made more than a certain length of time after the original charge was made, either by making such transfers unallowable or by requiring an explanation for the tardiness of the request. BFB A-47 currently restricts cost transfers to "within 120 day of the original charge."