Expense Transfer Requests

The Principal Investigator (PI) or the departmental administrative staff will sometimes wish to move an expense from one speedtype to another to correct an input or posting error. These entries can be completed by RI if the department submits the Expense Reallocation form.

Take special note of transfers from one grant to another, and check grant documents on both projects to ensure that the transfer is allowable and allocable. When clearing overspent amounts on grant awards, it is necessary for the expenses to be moved to a departmental or R&D account. Simply transferring overspent amounts from one grant to another to cover the overrun is not allowable according to the OMB Circulars. The cost must be allowable on the grant to which it is being moved and must benefit that award.

Also take note of whether expenses are being moved between budget periods of the same award. This is only allowable if the expense actually was incurred within the current period but was posted to the older one (i.e. payroll). If expenses were incurred prior to the start of the new budget period, they must be transferred to a departmental or R&D account. Payroll transfers between two active awards should be done through the Retroactive Funding Adjustment (RFA) process, rather than direct transfers, except in the case of small balances that can be moved to reconcile an account exactly to zero once RFAs have run.

Be sure to review the justification supplied with the expense transfer request. It should thoroughly explain the reason the expense is more appropriate on another account and provide enough documentation to satisfy an auditor. Remarks such as "to clear overspent amount" or "to transfer from QSXXXXXX to QAXXXXXX" do not constitute satisfactory justification. Ask the department for additional information if the justification is vague.

**If transfer will debit a federal grant, refer to FDP Prior Approval Requirements or NIH Grants Policy Statement for guidance.

***If transfer will debit a private or state grant, refer to the specific Notice of Grant Award for this program as well as the sponsoring agency's guidelines.

Check Overall Grant Status report in PS (including encumbrances) to make sure that the account to be charged has sufficient funds to cover the expense.
Print this report on both accounts affected by the transfer as documentation for the project files by clicking on the printer icon in the middle of the screen.
Check grant folder to see if the expense is listed in the budget proposal. If it is not, verify it is an allowable change per sponsor guidelines.
Review the regulations contained in the Procedure to Monitor Expenditures and ensure that this transaction is appropriate according to those rules.
Prepare journal entry for approved expenses transfer in PS.
- Navigate to General Ledger via left-hand menu in PS.
- Click Journals > Journal Entry > Create/Update Journal Entries.
- Choose Add a New Value tab; click Add.
- In the Long Description box, explain the reason for the transfer and include justification and original posting information for the transaction, such as voucher or requisition number.
- Click on Lines tab.
- Create entry reflecting a credit to the speedtype from which the expense will be moved and a debit to the speedtype to which it will go.
- If transferring between funds, add two extra lines to show "Due To/Due From" on each fund. These lines should reflect the opposing entry on each fund. Enter account 011310 for the positive entry and 023010 for the negative. Also need to show fund codes and budget years on these lines.
- Save the entries and click on "Submit for Approval". The entries will be forwarded to Mei-Shya for approval and posting.
Print copy of the JE by clicking the printer icon in the screen. File with grant status report in the project file for documentation of the transfer. If transfer affects multiple projects, documentation should be filed in all involved award files.