Cost Transfers
Overview
Transfers of costs between cost centers or research projects are commonly used to correct the financial records (such as transfers of costs between projects when costs were initially charged to the wrong project and the University’s control system found the error) and for other valid reasons.
A cost transfer is "late" if it is processed more than 90 days after the initial General Ledger posting date of the original charge.
The university has developed the following policies and procedures in order to ensure the propriety of cost transfers on sponsored programs:
- Cost transfers, which represent corrections of clerical or bookkeeping errors, must be made promptly after the errors are discovered. Any late cost transfer must be supported by documentation which contains a full explanation of how the error occurred, and a certification of the correctness of the new charge. An explanation that merely states that the transfer was made "to correct error" or "to transfer to correct project" is not sufficient. All cost transfer requests are subject to the review and approval by Research Financial Services (formerly GCA).
- Any payroll-related cost transfer that involves a change in previously certified effort will require a re-certification that the revised distribution of pay accurately represents effort during the period indicated. Such transfers and their accompanying justifications must be reasonable, equitable, and in realistic proportion to the benefit provided.
- Cost transfers should be made within 90 calendar days of the General Ledger (GL) posting date of the original transaction. Any transfer made after this period is considered "late" and raises serious questions regarding the propriety of the transfer. Late cost transfers are only acceptable under very specific circumstances and, thereby, require detailed justification explaining why the transfer is late, how the expense will benefit the project it is being transferred to, and how similar transactions will be prevented in the future.
The table below summarizes the forms and procedures required for payroll and non-payroll cost transfers on Sponsored Programs.
| Payroll | Non-Payroll |
|
For payroll cost transfers submitted less than 90 days after the original GL posting date of the expense, units can process these transfers themselves if the account is in Commitment Accounting. If the cost transfer is late*, or if the account is expired, complete a cost transfer online at: https://swrj.rutgers.edu/ |
For non-payroll cost transfers submitted less than 90 days after the original GL posting date of the expense, units can process these transfers themselves if the account is not expired. |
| When it has been determined that an SWRJ Cost Transfer cannot be completed by Research Financial Services & Payroll Services, a journal entry form (Excel) will be prepared. Salaried journal entries are considered only in extraordinary circumstances and Units should only consider this as a last resort. Please note that this JE will only appear in the General Ledger and not in Peoplesoft and Units should attach the JE to the Effort Certification card. | A Late Cost Transfer Exception Request Form (Excel) must be completed if the request is late* or if the account is expired or closed. This form should be submitted to Research Financial Services (formerly GCA) via the IPAS portal. |