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 the RI if the department submits an Expense Reallocation form. Payroll funding reallocations should be done through the Retroactive Funding Adjustment (RFA) process.
Reallocations from one grant to another must be allowable and allocable to the receiving project and be within 90 days of the original charge, or within 90 days of the discovery of errors. When clearing overspent amounts on grant awards, the expenses can only 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 Uniform Guidance (2CFR200). In the end, the cost must be allowable on the grant to which it is being moved, must be covered by the available balance on the award, and must benefit that award.
Occasionally it is necessary to move expenses to the correct budget period of the same award. This is only allowable when the expense was actually incurred within the current period but was posted to a previous budget period. If expenses were incurred prior to the start of the new project period, they must be transferred to a departmental or R&D account.
It is important to provide justification for the expense reallocation that will satisfy an auditor. Remarks such as "to clear overspent amount" or "to transfer from QSXXXXXX to QAXXXXXX" do not constitute satisfactory justification. Additional information may be requested, if the justification is vague.