Cost Transfers

John P. Kruczek, University Controller

In November 1998, we revised our cost transfer guidelines to state that cost transfers must be made within 60 days of the error or 30 days after the end of the project budget period, whichever date occurs first. We believed this was a reasonable amount of time to detect a need for a transfer and make a change in funding source. Unfortunately, a large number of cost transfers continue to occur beyond this time period. Many of you expressed concern that these restrictions were too stringent.

In response to your concerns, the guidelines are being revised to state that the Contracts & Grant offices (IFAS, Engineering, and Administrative Affairs) will accept transfers within 120 days of the original charge or 45 days after the end of the project budget period, whichever date occurs first. These dates are the maximum that most federal grant and contract procedures allow and we ask your cooperation in meeting them. Please be particularly sensitive to contracts and grants with final reporting periods less than 45 days after termination and make every effort to submit cost transfers promptly to facilitate timely final invoices and reports.

Late transfers potentially subject the university to significant cost disallowances on federal contracts and grants. All cost transfers which are submitted more than 120 days from the date of occurrence of the original charge or more than 45 days after the contract or grant termination date must be accompanied by a letter of justification addressed to Mr. Gerald Schaffer, Vice President of Administrative Affairs. In order to be considered for further processing, these requests must demonstrate that the delay was unavoidable, and must indicate what steps have been initiated in the center or department to prevent late cost transfers in the future. The request must be signed by either the Director or Department Chair. Exception requests should be forwarded to your Contracts & Grants office for processing.

This cost transfer policy may be reviewed on the web at http://fa.ufl.edu/cg/. If you are unable to obtain the policy through the Internet, you may contact Tonji Herbert in Contracts & Grants at 392-1235 for a copy.