Brown Bag Breakfast Briefing: Cost Transfers Quick Reference Quide June / September 2009

Cost Transfer Quick Reference The government expects that costs are charged appropriately at the time incurred and that significant adjustments should not be required if adequate financial management practices and policies exist. All cost transfers (salary and non-salary) on sponsored programs must include: Explain HOW the Error occurred Describe how the cost BENEFITS the award to which the cost is being transferred to WHAT makes the expense appropriate to the account now receiving the expense Explanation merely stating “to transfer to appropriate account/subcode” is NOT acceptable EASILY traces back to original entry on GL – Including ALL details such as dates (WHERE/WHEN), VN, JE, Document, vendor names, PO# and amounts - Explain WHY was the expense charged to the account from which it is now being moved Provide detailed information so a “lay” person 10 years from now would understand it What action is being taken to eliminate future need for cost transfers of this type?

Cost Transfer Best Practices Charge the appropriate award initially Request HOLD Accounts Review financial reports regularly with PI Attend additional training on cost transfers on sponsored programs Ensure all cost transfers are timely, fully documented and compliant Within 90 days of original entry date Answers all – WHO, WHAT, WHERE, WHY, and HOW Are Allowable, Reasonable, Allocable and Treated Consistently RIAS: Remember to give complete justification in description field Recommendation – Use the short/long text attachment to over 90 day justifications. For cost allocations, remember to specify the basis for allocation # of experiments, samples, headcount, etc. For SRAs, remember to cite specific dates – not simply pay period University Cost Transfer Policy: http://postaward.rutgers.edu/Cost_Transfer_Policy.htm