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.