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Normandale Community College Policies and Procedures

9.10.1 Cost Transfer Procedure for Sponsored Programs

Related Policy:

From the Code of Federal Relations – Title 2 Subtitle A Chapter II Part 200

UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS: §200.308 (“Uniform Guidance”)

National Science Foundation -- Proposal & Award Policies & Procedures Guide (PAPPG) (NSF 19-1) Chapter X: Allowability of Costs A.3

The Department of Health and Human Services Grants Policy Statement (HHS GPS)

Cost Considerations – Cost Transfers (II-43)

Purpose: To detail the procedures that Normandale follows to ensure that the processing of cost transfers for sponsored projects complies with the requirements of the Office of Management and Budget (OMB) Uniform Guidance and program sponsors.

Part 1:

  1. A cost transfer will be processed if an adjustment or correction of an allocation of an expenditure connected to an award is required to align the actual expenditure with the correct cost center or approved, budgeted line item.
  2. The cost transfer will be processed via a journal entry (if non-payroll expense) or written notification to Human Resources (if a payroll correction).
  3. The Principal Investigator/Project Director (PI/PD) provides a written justification for the reallocation or correction. The Grants Accountant confirms that budgeted funds are available and notifies the Grants Specialist that the reallocation request is in process.
  4. The PI/PD’s supervisor reviews and approves the cost transfer before the transaction is processed.
  5. If approved, the cost transfer is processed by the Grants Accountant (if non-payroll expense) and Human Resources (for a payroll correction) as soon as the need for a transfer is identified, but no later than 90 days after the original transaction.
  6. A cost transfer that is requested greater than 90 days after the original transaction requires the review and approval of: the Grants Specialist, the PI/PD’s supervisor and appropriate Vice President.

Policy History:

Date of Adoption: 2020

Owner: Grants

Date and Subject of Revisions:

Next Review Date: 4/12/2023